Audit Information |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Auditor [Line Items] | |
| Auditor Firm ID | 238 |
| Auditor Name | PricewaterhouseCoopers LLP |
| Auditor Location | San Jose, California |
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Preferred stock par value (in usd per share) | $ 0.01 | $ 0.01 |
| Preferred stock shares authorized (in shares) | 400 | 400 |
| Preferred stock, shares outstanding (in shares) | 0 | 0 |
| Preferred stock, shares issued (in shares) | 0 | 0 |
| Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
| Common stock, shares authorized (in shares) | 600,000 | 600,000 |
| Common stock shares issued (in shares) | 273,851 | 271,706 |
| Common stock shares outstanding (in shares) | 273,851 | 271,706 |
| Treasury Stock, Common, Shares | 57,049 | 57,453 |
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Revenue: | |||
| Total revenue | $ 4,641,264 | $ 4,089,986 | $ 3,561,718 |
| Costs and expenses: | |||
| Marketing and sales | 757,483 | 690,319 | 604,224 |
| Research and development | 1,549,093 | 1,441,796 | 1,251,544 |
| General and administrative | 282,283 | 242,430 | 242,116 |
| Amortization of acquired intangibles | 30,375 | 18,162 | 18,470 |
| Restructuring | 23,765 | 11,013 | 55 |
| Total costs and expenses | 3,290,501 | 2,838,761 | 2,488,032 |
| Income from operations | 1,350,763 | 1,251,225 | 1,073,686 |
| Interest expense | (75,999) | (36,185) | (22,934) |
| Other income (expense), net | 121,055 | 66,886 | (5,389) |
| Income before provision for income taxes | 1,395,819 | 1,281,926 | 1,045,363 |
| Provision for income taxes | 340,335 | 240,782 | 196,411 |
| Net income | $ 1,055,484 | $ 1,041,144 | $ 848,952 |
| Net income per share - basic (in usd per share) | $ 3.89 | $ 3.86 | $ 3.13 |
| Net income per share - diluted (in usd per share) | $ 3.85 | $ 3.82 | $ 3.09 |
| Weighted average common shares outstanding - basic (shares) | 271,212 | 269,381 | 271,198 |
| Weighted average common shares outstanding - diluted (shares) | 273,833 | 272,748 | 275,011 |
| Product and maintenance | |||
| Revenue: | |||
| Total revenue | $ 4,213,509 | $ 3,834,359 | $ 3,340,197 |
| Costs and expenses: | |||
| Cost of sales | 436,600 | 331,760 | 273,565 |
| Services | |||
| Revenue: | |||
| Total revenue | 427,755 | 255,627 | 221,521 |
| Costs and expenses: | |||
| Cost of sales | $ 210,902 | $ 103,281 | $ 98,058 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Statement of Comprehensive Income [Abstract] | |||
| Net income | $ 1,055,484 | $ 1,041,144 | $ 848,952 |
| Other comprehensive income (loss), net of tax effects: | |||
| Foreign currency translation adjustments | (87,933) | (4,815) | (59,310) |
| Changes in defined benefit plan liabilities | (239) | 1,566 | 984 |
| Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (7,038) | 0 | 0 |
| Unrealized gains (losses) on investments | (484) | 132 | 0 |
| Total other comprehensive loss, net of tax effects | (95,694) | (3,117) | (58,326) |
| Comprehensive income | $ 959,790 | $ 1,038,027 | $ 790,626 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Statement of Cash Flows [Abstract] | |||
| Cash and cash equivalents at beginning of year | $ 1,008,152 | $ 882,325 | $ 1,088,940 |
| Cash flows from operating activities: | |||
| Net income | 1,055,484 | 1,041,144 | 848,952 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation and amortization | 196,935 | 145,292 | 132,088 |
| Amortization of debt discount and fees | 3,473 | 1,262 | 1,134 |
| Stock-based compensation | 391,219 | 325,611 | 270,439 |
| (Gain) loss on investments, net | (49,593) | (34,602) | 5,425 |
| Deferred income taxes | (128,737) | (36,512) | (107,606) |
| Provisions for losses on receivables | 2,078 | 3,325 | 204 |
| ROU asset amortization and change in operating lease liabilities | (1,920) | 451 | 3,342 |
| Other non-cash items | 587 | 1,983 | 371 |
| Changes in operating assets and liabilities, net of effect of acquired businesses: | |||
| Receivables | (180,287) | (11,748) | (138,471) |
| Inventories | (82,771) | (65,895) | (23,073) |
| Prepaid expenses and other | (81,529) | 39,015 | (38,927) |
| Other assets | 11,866 | (45,784) | (933) |
| Accounts payable and accrued liabilities | 33,676 | 5,415 | 113,945 |
| Deferred revenue | 66,478 | (21,583) | 131,462 |
| Other long-term liabilities | 23,592 | 1,802 | 43,542 |
| Net cash provided by operating activities | 1,260,551 | 1,349,176 | 1,241,894 |
| Cash flows from investing activities: | |||
| Purchases of investments | (4,982) | (176,170) | (1,000) |
| Proceeds from the sale and maturity of investments | 47,980 | 64,775 | 366 |
| Purchases of property, plant and equipment | (142,542) | (102,337) | (123,215) |
| Purchases of intangible assets | 0 | (166) | (1,000) |
| Cash paid in business combinations, net of cash acquired | (737,574) | (198,351) | (613,785) |
| Net cash used for investing activities | (837,118) | (412,249) | (738,634) |
| Cash flows from financing activities: | |||
| Proceeds from revolving credit facility | 0 | 50,000 | 585,000 |
| Payments on revolving credit facility | 0 | (150,000) | (485,000) |
| Proceeds from the issuance of debt | 3,196,595 | 0 | 300,000 |
| Payments of debt | (1,350,000) | 0 | 0 |
| Payments of debt issuance costs | (23,828) | 0 | (425) |
| Proceeds from issuance of common stock | 204,237 | 132,957 | 105,331 |
| Stock received for payment of employee taxes on vesting of restricted stock | (237,737) | (136,396) | (111,864) |
| Payments for repurchases of common stock | (550,026) | (700,134) | (1,050,091) |
| Net cash provided by (used for) financing activities | 1,239,241 | (803,573) | (657,049) |
| Effect of exchange rate changes on cash and cash equivalents | (26,796) | (7,527) | (52,826) |
| Increase (decrease) in cash and cash equivalents | 1,635,878 | 125,827 | (206,615) |
| Cash and cash equivalents at end of year | 2,644,030 | 1,008,152 | 882,325 |
| Supplemental cash flow information: | |||
| Cash paid for interest | 43,219 | 34,934 | 21,122 |
| Cash paid for income taxes, net | $ 509,979 | $ 253,700 | $ 233,235 |
Business Overview |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Accounting Policies [Abstract] | |
| BUSINESS OVERVIEW | BUSINESS OVERVIEWCadence® is a global market leader that develops computational, AI-driven software, accelerated hardware, and IP solutions for engineers and scientists to create new and innovative products to life. The world’s most innovative technology companies use Cadence solutions and services to deliver transformational products to multiple industries that drive the global economy. The products these companies develop are some of the most complex systems in the world. Since its inception, Cadence has been at the forefront of technology innovation with its customers, helping them solve their most complex challenges in the semiconductor and electronic systems industries to unlock limitless opportunities. |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. Certain prior year information has been reclassified to conform to the current year presentation. Historically, Cadence’s fiscal years were 52- or 53-week periods ending on the Saturday closest to December 31. During 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 beginning with Cadence’s 2023 fiscal year, which began on January 1, 2023. Fiscal year 2022, which is included in this report for comparative purposes, represents a 52-week period. Cadence’s first three fiscal quarters end on March 31, June 30, and September 30. Use of Estimates Preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recently Adopted Accounting Standards Segment Reporting In November 2023. the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” intended to improve reportable segment disclosure requirements, primarily through enhanced annual and interim disclosures about significant segment expenses. Cadence adopted this ASU retrospectively during fiscal 2024. See Note 21 in the notes to the consolidated financial statements for further details. New Accounting Standards Not Yet Adopted Income Taxes In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This standard is effective for fiscal years beginning after December 15, 2024, and may be applied on a retrospective or prospective basis. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. Income Statement - Expense Disaggregation Disclosure In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures,” which requires additional disclosure of certain costs and expenses in the notes to the financial statements. The updated standard is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted and will be applied prospectively with the option for retrospective application. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. Foreign Operations Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence’s consolidated entities operating in the United States and certain of its consolidated subsidiaries operating outside the United States. The functional currency for Cadence’s other consolidated entities operating outside of the United States is generally the country’s local currency. Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using an average exchange rate for the period. Cadence includes adjustments from translating assets and liabilities into United States dollars, and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders’ equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in other income (expense), net, in the consolidated income statements. Concentrations of Credit Risk Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivable, investments and forward contracts. Credit exposure related to Cadence’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. Cash and Cash Equivalents Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents. Receivables Cadence’s receivables, net includes invoiced accounts receivable and the current portion of unbilled receivables. Unbilled receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time and Cadence has an unconditional right to the payment. Cadence’s accounts receivable and unbilled receivables were initially recorded at the transaction value. Cadence’s long-term receivables balance includes receivable balances to be invoiced more than one year after each balance sheet date. Allowances for Doubtful Accounts Cadence assesses its ability to collect outstanding receivables and provides customer-specific allowances, allowances for credit losses and general allowances for the portion of its receivables that are estimated to be uncollectible. The allowances are based on the current creditworthiness of its customers, historical experience, expected credit losses, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions for these allowances are recorded in general and administrative expense in Cadence’s consolidated income statements. Inventories Inventories are computed at standard costs which approximate actual costs and are valued at the lower of cost or net realizable value based on the first-in, first-out method. Cadence’s inventories include high technology parts and components for complex accelerated hardware systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to manage the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. Cadence’s policy is to reserve for inventory in excess of future demand forecasts or for other known obsolescence or realization issues. Provisions for obsolescence reserves are recorded as a component of cost of product and maintenance in Cadence’s consolidated income statements. Property, Plant and Equipment Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows:
Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life. Capitalized costs were not material during fiscal 2024, 2023 or 2022. Cadence recorded depreciation and amortization expense of $96.9 million, $78.4 million and $69.1 million during fiscal 2024, 2023 and 2022, respectively, for property, plant and equipment. Software Development Costs Software development costs are capitalized beginning when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence’s products has typically been of short duration. Costs incurred during fiscal 2024, 2023 and 2022 were not material. Deferred Sales Commissions Cadence records an asset for the incremental costs of obtaining a contract with a customer, including direct sales commissions that are earned upon execution of the contract. Cadence uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and renewals and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two to three years for Cadence’s software arrangements and upon delivery for its hardware and IP arrangements. Incremental costs related to initial contracts and renewals are amortized over the period of the arrangement in each case because Cadence pays the same commission rate for both new contracts and renewals. Deferred sales commissions are tested for impairment on an ongoing basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized to the extent that the amount of deferred sales commission exceeds the remaining expected gross margin (remaining revenue less remaining direct costs) on the goods and services to which the deferred sales commission relates. Total capitalized costs were $51.9 million and $47.6 million as of December 31, 2024, and December 31, 2023, respectively, and are included in other assets in Cadence’s consolidated balance sheet. Amortization of these assets was $47.6 million, $41.4 million and $40.5 million during fiscal 2024, 2023 and 2022, respectively, and is included in sales and marketing expense in Cadence’s consolidated income statement. Goodwill Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence’s single reporting unit may be less than its carrying amount. To assess for impairment, Cadence compares the estimated fair value of its single reporting unit to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired, and no further analysis is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to record an impairment charge. Long-Lived Assets, Including Acquired Intangibles Cadence’s long-lived assets consist of property, plant and equipment, and acquired intangibles. Acquired intangibles consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, capitalized software, and in-process research and development. These acquired intangibles are acquired through business combinations or direct purchases. Acquired intangibles with definite lives are amortized on a straight-line basis over the estimated economic life of the underlying products and technologies, which range from one year to fifteen years. Acquired intangibles with indefinite lives, or in-process technology, consists of projects that had not reached technological feasibility by the date of acquisition. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the assets might be impaired. Cadence reviews its long-lived assets, including acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value. Leases Lessee Considerations Cadence has operating leases primarily consisting of facilities with remaining lease terms of approximately one year to fourteen years. Cadence has options to terminate many of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that Cadence will not exercise the early termination option. For certain leases, Cadence has options to extend the lease term for additional periods ranging from one year to ten years. Renewal options are not considered in the remaining lease term unless it is reasonably certain that Cadence will exercise such options. At inception of a contract, Cadence determines an arrangement contains a lease if the arrangement conveys the right to use an identified asset and Cadence obtains substantially all of the economic benefits from the asset and has the ability to direct the use of the asset. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of Topic 842, Cadence combines the lease and non-lease components in determining the lease liabilities and right-of-use (“ROU”) assets. Non-lease components primarily include common-area maintenance and other management fees. Operating lease expense is generally recognized evenly over the term of the lease. Payments under Cadence’s lease agreements are primarily fixed; however, certain agreements contain rental payments that are adjusted periodically based on changes in consumer price and other indices. Changes to payments resulting from changes in indices are expensed as incurred and not included in the measurement of lease liabilities and ROU assets. Cadence’s lease agreements do not provide an implicit borrowing rate, therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. The incremental borrowing rate represents a comparable rate to borrow on a collateralized basis over a similar term and in the economic environment where the leased asset is located. Lessor Considerations Although most of Cadence’s revenue from its hardware business comes from sales of hardware, Cadence also leases its hardware products to some customers. Cadence determines the existence of a lease when the customer controls the use of the identified hardware for a period of time defined in the lease agreement. Cadence’s leases range in duration up to three years with payments generally collected in equal quarterly installments. Cadence’s leases do not include termination rights or variable pricing and typically do not include purchase rights at the end of the lease. Short-term leases are usually less than two years and are classified as operating leases with revenue recognized and depreciation expensed on a straight-line basis over the term of the lease. Long-term leases are typically for three years and are classified as sales-type leases with revenue and cost of sales recognized upon installation. Cadence’s operating leases and sales-type leases contain both lease and non-lease components. Because the pattern of revenue recognition is the same for both the lease and non-lease components in Cadence’s operating leases, Cadence has elected the practical expedient to not separate lease and related non-lease components and accounts for both components under Topic 842. Cadence allocates value to the lease and non-lease components in its sales-type leases using standalone selling prices (“SSPs”) similar to those used under ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” the current accounting standard governing revenue recognition. When Cadence leases its hardware in the same arrangement as software or IP, Cadence allocates value to each performance obligation using SSPs. Investments in Equity Securities Cadence’s investments in marketable equity securities are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence records realized and unrealized holding gains or losses as part of other income (expense), net in the consolidated income statements. Cadence’s non-marketable investments include its investments in privately held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using the measurement alternative when the fair value of the investment is not readily determinable, and Cadence does not have the ability to exercise significant influence, or the equity method of accounting when it is determined that Cadence has the ability to exercise significant influence. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of the investee’s income or loss, net of the effects of any basis differences, to other income (expense), net on a one-quarter lag in Cadence’s consolidated income statements. Cadence reviews its non-marketable investments for impairment on a regular basis by considering investee financial performance and other information received from the investee companies that indicates a decline in value has occurred. For non-marketable equity investments accounted for using the measurement alternative, the carrying amount may also be adjusted based on observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments to the carrying amounts of non-marketable investments are recorded in other income (expense), net in the consolidated income statements. There were no material events or circumstances impacting the carrying amount of our non-marketable investments during the periods presented. Investments in Debt Securities Cadence’s investments in debt securities are comprised of investments in mortgage-backed and asset backed-securities and are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence classifies its investment in debt securities as available-for-sale, and gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on its consolidated balance sheets. Cadence assesses its portfolio of debt securities for impairment at least quarterly. Cadence records an allowance for credit losses on debt securities when the fair value of a debt security is below its amortized cost, and it is more likely than not that Cadence will either sell the impaired security before recovery of its amortized basis or has the intention to sell the security. Provisions for credit losses on impaired debt securities are recorded as a component of other income (expense), net in the consolidated income statements. Derivative Financial Instruments Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income (expense), net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less. Nonqualified Deferred Compensation Trust Executive officers, senior management and members of Cadence’s Board of Directors may elect to defer compensation payable to them under Cadence’s Nonqualified Deferred Compensation Plan (“NQDC”). Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. The selected investments held in the NQDC accounts are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income (expense), net. These securities are classified in other assets in the consolidated balance sheets because they are not available for Cadence’s use in its operations. Cadence’s obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements. Treasury Stock Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders’ equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of retained earnings in the consolidated statements of stockholders’ equity. There were no losses recorded as a component of retained earnings by Cadence on the reissuance of treasury stock during fiscal 2024, 2023 or 2022. The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Cadence did not incur any excise tax on the net value of stock repurchases during fiscal 2024. During fiscal 2023, Cadence recorded excise tax of $0.9 million as a component of treasury stock to account for the incremental cost of the shares repurchased. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which Cadence expects to be entitled in exchange for promised goods or services. Cadence’s performance obligations are satisfied either over time or at a point in time. Product and maintenance revenue includes Cadence’s licenses of software and IP, sales of emulation hardware and the related maintenance on these licenses and sales. Services revenue includes revenue received for performing engineering services (which are generally not related to the functionality of other licensed products), customized IP on a fixed fee basis, and sales from cloud-based solutions that provide customers with software, hardware and services over a period of time. Cadence enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, Cadence allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its SSP. Cadence generates revenue from contracts with customers and applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. Some customers enter into 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. Cadence records a customer deposit liability for amounts received from customers prior to the arrangement meeting the definition of a revenue contract. Software Revenue Recognition Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an arrangement and updates are generally made available throughout the entire term of the arrangement, which is generally two to three years. Cadence’s updates provide continued access to evolving technology as customers’ designs migrate to more advanced nodes and as its customers’ technological requirements evolve. In addition, certain time-based license arrangements include remix rights and unspecified additional products that become commercially available during the term of the agreement. Payments are generally received in equal or near equal installments over the term of the agreement. Multiple software licenses, related updates, and technical support in these time-based arrangements constitute a single, combined performance obligation and revenue is recognized over the term of the license, commencing upon the later of the effective date of the arrangement or transfer of the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer. For certain software arrangements where the updates are not critical to maintaining the utility of the software, Cadence considers the license, related updates and technical support as separate performance obligations. In these instances, the total consideration is allocated across the separate performance obligations using SSPs and the license revenue is recognized upon the later of the delivery or effective date of the contract and the revenue related to the updates and technical support is recognized over the term of the arrangement. Hardware Revenue Recognition Cadence generally has two performance obligations in arrangements involving the sale or lease of hardware products. The first performance obligation is to transfer the hardware product (which includes software integral to the functionality of the hardware product). The second performance obligation is to provide maintenance on hardware and its embedded software, which includes rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. The transaction price allocated to the hardware product is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. Cadence has concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. The transaction price allocated to maintenance is recognized as revenue ratably over the maintenance term. Payments for hardware contracts are generally received upon delivery of the hardware product. Shipping and handling costs are considered fulfillment costs and are included in cost of product and maintenance in Cadence’s consolidated income statements. IP Revenue Recognition Cadence generally licenses IP under nonexclusive license agreements that provide usage rights for specific designs. In addition, for certain of Cadence’s IP license agreements, royalties are collected as customers ship their own products that incorporate Cadence IP. These arrangements generally have two performance obligations—transferring the licensed IP and associated maintenance, which includes rights to technical support, and software updates that are all provided over the maintenance term and have a time-based pattern of transfer to the customer. Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery of the IP or the beginning of the license period and revenue allocated to the maintenance is recognized over the maintenance term. Royalties are recognized as revenue in the quarter in which the applicable Cadence customer ships its products that incorporate Cadence IP. Payments for IP contracts are generally received upon delivery of the IP. Cadence customizes certain IP and revenue related to this customization is recognized as services revenue as described below. Services Revenue Recognition Revenue from service contracts is recognized over time, generally using costs incurred or hours expended to measure progress. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources. Stock-Based Compensation Cadence recognizes the cost of awards of equity instruments granted to employees in exchange for their services as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. Cadence recognizes the impact of forfeitures on stock-based compensation expense as they occur. The fair value of stock options and purchase rights issued under Cadence’s Employee Stock Purchase Plan (“ESPP”) are calculated using the Black-Scholes option pricing model. The computation of the expected volatility assumption used for new awards is based on a weighting of historical and implied volatilities. When determining the expected term, Cadence reviews historical employee exercise behavior from options having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes for the comparable term in effect at the time of grant. The expected dividend yield used in the calculation is zero because Cadence has not historically paid and currently does not expect to pay dividends in the foreseeable future. The fair value of market-based performance stock awards is calculated using a Monte Carlo simulation model and takes into account the same input assumptions as the Black-Scholes model, as well as the possibility that the market conditions may not be satisfied. Cadence recognizes stock-based compensation expense on the graded-vesting method for market-based performance stock awards. Advertising Cadence expenses the costs of advertising as incurred. Total advertising expense, including marketing programs and events, was $23.2 million, $21.7 million and $17.0 million during fiscal 2024, 2023 and 2022, respectively, and is included in marketing and sales in the consolidated income statements. Restructuring Cadence records personnel-related restructuring charges with termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-customary termination benefits when the plan has been communicated to the affected employees. Cadence generally begins recording facilities-related restructuring charges in the period in which a formal plan to vacate an affected facility is established. In connection with facilities-related restructuring plans, Cadence has made certain assumptions and estimates related to facilities, particularly the timing of exit and the ability to sublease. Facility closure costs in restructuring charges primarily includes accelerated ROU asset amortization, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment. Cadence records estimated provisions for termination benefits and outplacement costs along with other personnel-related restructuring costs, asset impairments related to abandoned assets and other costs associated with the restructuring plan. Cadence regularly evaluates the adequacy of its restructuring liabilities and adjusts the balances based on actual costs incurred or changes in estimates and assumptions. Subsequent adjustments to restructuring accruals are classified as restructuring in the consolidated income statements. Accounting for Income Taxes Cadence accounts for the effect of income taxes in its consolidated financial statements using the asset and liability method. This process involves estimating actual current tax liabilities together with assessing carryforwards and temporary differences resulting from differing treatment of items, such as depreciation, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. Cadence accounts for the United States global intangible low-taxed income as a period expense. Cadence then records a valuation allowance to reduce the deferred tax assets to the amount that Cadence believes is more likely than not to be realized based on its judgment of all available positive and negative evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. This assessment, which is completed on a taxing jurisdiction basis, takes into account a number of types of evidence, including the following: •the nature and history of current or cumulative financial reporting income or losses; •sources of future taxable income; •the anticipated reversal or expiration dates of the deferred tax assets; and •tax planning strategies. Cadence takes a two-step approach to recognizing and measuring the financial statement benefit of uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement of the audit. Cadence classifies interest and penalties on unrecognized tax benefits as income tax expense or benefit. For additional discussion of income taxes, see Note 8 in the notes to the consolidated financial statements.
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| REVENUE | REVENUE Cadence groups its products and services into categories related to major design activities. The following table shows the percentage of revenue contributed by each of Cadence’s product categories for fiscal 2024, 2023 and 2022:
_____________ * 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 fiscal 2024, 2023 or 2022. 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 hardware, individual IP licenses and certain software licenses. The percentage of Cadence’s recurring and up-front revenue in any single fiscal period is primarily impacted by delivery of hardware and IP products to its customers. The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for fiscal 2024, 2023 and 2022:
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 and the license of certain software, Cadence has concluded that the licenses and the related updates and technical support 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. These time-based software arrangements include multiple software licenses and updates to the licensed software products, as well as technical support, and Cadence has concluded that these promised goods and services are a single, combined performance obligation. The accounting for contracts with multiple performance obligations requires the contract’s transaction price to be allocated to each distinct performance obligation based on relative SSP. Judgment is required to determine 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 consolidated balance sheets. For certain software, hardware and IP agreements with payment plans, Cadence records an unbilled receivable related to revenue recognized upon transfer of control because it has an unconditional right to invoice and receive payment in the future related to those transferred products or services. Cadence records a contract asset when revenue is recognized prior to invoicing and Cadence does not have the unconditional right to invoice or retains performance risk with respect to that performance obligation. Cadence records deferred revenue when revenue is recognized subsequent to invoicing. For Cadence’s time-based software agreements, customers are generally invoiced in equal, quarterly amounts, although some customers prefer to be invoiced in single or annual amounts. The contract assets indicated below are included in prepaid expenses and other in the consolidated balance 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 December 31, 2024, and December 31, 2023, were as follows:
Cadence recognized revenue of $669.9 million, $689.7 million and $540.7 million during fiscal 2024, 2023 and 2022, respectively, that was included in the deferred revenue balance at the beginning of each respective fiscal year. All other activity in deferred revenue, with the exception of deferred revenue assumed from acquisitions, is due to the timing of invoices in relation to the timing of revenue as described above. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, Cadence has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing Cadence’s products and services, and not to facilitate financing arrangements. Remaining Performance Obligations Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Cadence has elected to exclude the potential future royalty receipts from the remaining performance obligations. Contracted but unsatisfied performance obligations were approximately $6.8 billion as of December 31, 2024, which included $0.5 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. Cadence estimates its remaining performance obligations at a point in time. Actual amounts and timing of revenue recognition may differ from these estimates largely due to changes in actual installation and delivery dates, as well as contract renewals, modifications and terminations. As of December 31, 2024, Cadence expected to recognize 54% of the contracted but unsatisfied performance obligations, excluding non-cancelable commitments, as revenue over the next 12 months, 42% over the next 13 to 36 months and the remainder thereafter. Cadence recognized revenue of $68.0 million, $55.0 million and $52.8 million during fiscal 2024, 2023 and 2022, respectively, from performance obligations satisfied in previous periods. These amounts represent royalties earned during the period and exclude contracts with nonrefundable prepaid royalties. Nonrefundable prepaid royalties are recognized upon delivery of the IP because Cadence’s right to the consideration is not contingent upon customers’ future shipments.
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RECEIVABLES, NET |
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| RECEIVABLES, NET | RECEIVABLES, NET Cadence’s current and long-term receivables balances as of December 31, 2024, and December 31, 2023, were as follows:
Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of December 31, 2024, one customer accounted for approximately 11% of Cadence’s total receivables. As of December 31, 2023, no single customer accounted for 10% or more of Cadence’s total receivables. Allowance for doubtful accounts Cadence’s provisions for losses on its accounts receivable during fiscal 2024, 2023 and 2022 were as follows:
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DEBT |
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| DEBT | DEBT Cadence’s outstanding debt as of December 31, 2024, and December 31, 2023, was as follows:
Senior Notes In October 2014, Cadence issued $350.0 million aggregate principal amount of 4.375% Senior Notes that were due October 15, 2024 (the “2024 Notes”). As of December 31, 2023, the carrying value of the 2024 Notes was classified as a current liability on Cadence’s consolidated balance sheet. In October 2024, Cadence settled the outstanding principal of $350.0 million and accrued interest on its 2024 Notes. In September 2024, Cadence issued $500.0 million aggregate principal amount of 4.200% Senior Notes due September 10, 2027 (the “2027 Notes”). Cadence received net proceeds of $496.5 million from the issuance of the 2027 Notes, net of a discount of $0.1 million and issuance costs of $3.5 million. As of December 31, 2024, the fair value of the 2027 Notes was approximately $495 million. In September 2024, Cadence issued $1.0 billion aggregate principal amount of 4.300% Senior Notes due September 10, 2029 (the “2029 Notes”). Cadence received net proceeds of $989.8 million from the issuance of the 2029 Notes, net of a discount of $1.4 million and issuance costs of $8.8 million. As of December 31, 2024, the fair value of the 2029 Notes was approximately $980 million. In September 2024, Cadence issued $1.0 billion aggregate principal amount of 4.700% Senior Notes due September 10, 2034 (the “2034 Notes,” and together with the 2027 Notes and the 2029 Notes, the “New Notes”, and together with the 2024 Notes, the “Senior Notes”). Cadence received net proceeds of $988.8 million from the issuance of the 2034 Notes, net of a discount of $1.9 million and issuance costs of $9.3 million. As of December 31, 2024, the fair value of the 2034 Notes was approximately $960 million. Cadence may redeem the New Notes, in whole or in part, at any time or from time to time, at redemption prices specified in the governing indenture. In addition, Cadence may be required to repurchase New Notes upon occurrence of a change of control triggering event, as set forth in the governing indenture. The indentures governing Cadence’s New Notes include customary representations, warranties and restrictive covenants, including, but not limited to, restrictions on Cadence’s ability to grant liens on certain assets, enter into certain sale and lease-back transactions, or merge, consolidate or sell assets, and also include customary events of default. As of December 31, 2024, Cadence was in compliance with all covenants associated with the New Notes. Both the discount and issuance costs are being amortized to interest expense over the term of the New Notes using the effective interest method. Interest on the New Notes is payable semi-annually in arrears in March and September of each year, beginning March 2025. Cadence’s New Notes are unsecured and rank equal in right of payment to all of Cadence’s existing and future senior indebtedness. Term Loans In September 2022, Cadence entered into a $300.0 million three-year senior non-amortizing term loan facility due on September 7, 2025, as amended, with a group of lenders led by Bank of America, N.A., as administrative agent (the “2025 Term Loan”). Proceeds from the loan were used to finance Cadence’s acquisition of OpenEye Scientific Software, Inc. (“OpenEye”) in fiscal 2022. Debt issuance costs associated with the 2025 Term Loan were not material. In May 2024, Cadence entered into a $700.0 million two-year senior non-amortizing term loan facility due on May 30, 2026, as amended, with a group of lenders led by Bank of America, N.A., as administrative agent (the “2026 Term Loan”). All proceeds from the 2026 Term Loan were used to finance Cadence’s acquisition of BETA CAE Systems International AG (“BETA CAE”). Debt issuance costs associated with the 2026 Term Loan were not material. In September 2024, Cadence used a portion of the net proceeds from the New Notes to fully prepay the outstanding principal and accrued interest of both the 2025 Term Loan and the 2026 Term Loan. Revolving Credit Facility In August 2024, Cadence terminated its existing revolving credit facility, dated June 30, 2021, and amended in September 2022, and entered into a five-year senior unsecured revolving credit facility with a group of lenders led by Bank of America, N.A., as administrative agent (the “2024 Credit Facility”). The 2024 Credit Facility provides for borrowings up to $1.25 billion, with the right to request increased capacity up to an additional $500.0 million upon the receipt of lender commitments, for total maximum borrowings of $1.75 billion. The 2024 Credit Facility expires on August 14, 2029. Any outstanding loans drawn under the 2024 Credit Facility are due at maturity on August 14, 2029, subject to an option to extend the maturity date. Outstanding borrowings may be repaid at any time prior to maturity. Cadence paid debt issuance costs of $1.3 million that were recorded to other assets in Cadence’s consolidated balance sheet at the inception of the agreement. The debt issuance costs will be amortized to interest expense over the term of the 2024 Credit Facility. As of December 31, 2024, there were no outstanding borrowings under the 2024 Credit Facility. Interest accrues on borrowings under the 2024 Credit Facility at a rate equal to, at Cadence’s option, either (1) secured overnight financing rate (“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) the 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. Interest is payable quarterly. A commitment fee ranging from 0.050% to 0.125% 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 2024 Credit Facility approximates fair value. The 2024 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 2024 Credit Facility contains financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 3.5 to 1, with a step up to 4 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 3.25 to 1 and 3.75 to 1. As of December 31, 2024, Cadence was in compliance with all covenants associated with the 2024 Credit Facility.
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| Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACQUISITIONS | ACQUISITIONS 2024 Acquisitions Acquisition of BETA CAE On May 30, 2024, Cadence acquired all of the outstanding equity of BETA CAE, a system analysis platform provider of multi-domain, engineering simulation solutions. The aggregate purchase consideration for Cadence’s acquisition of BETA CAE, net of cash acquired of $91.3 million, was $1.14 billion. The aggregate purchase consideration was comprised of $638.2 million of cash and non-cash consideration of 1.74 million shares of Cadence common stock with an aggregate acquisition date fair value of $501.8 million. The addition of BETA CAE’s technologies and talent is expected to accelerate Cadence’s Intelligent System Design™ strategy by expanding its multiphysics system analysis portfolio and enabling entry into the structural analysis space. In connection with its acquisition of BETA CAE, Cadence paid an additional $55.8 million to a third-party escrow agent that will be released to certain former BETA CAE shareholders, subject to continued employment with Cadence, through the second quarter of fiscal 2026. The release of these funds is subject to continuous service and other conditions and is accounted for over the required service period as post-acquisition compensation expense in Cadence’s consolidated income statements. The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of BETA CAE based on their respective fair values on the acquisition date as follows:
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and is expected to be deductible for U.S. income tax purposes. Definite-lived intangible assets acquired with Cadence’s acquisition of BETA CAE were as follows:
Acquisition of Invecas, Inc. On January 8, 2024, Cadence acquired all of the outstanding equity of Invecas, Inc. (“Invecas”), a provider of design engineering, embedded software and system-level solutions. The aggregate cash consideration for Cadence’s acquisition of Invecas, net of cash acquired of $23.8 million, was $71.2 million. The acquisition adds a skilled system design engineering team to Cadence, with expertise in providing customers with custom solutions across chip design, product engineering, advanced packaging and embedded software. In connection with the acquisition of Invecas, Cadence paid an additional amount to a third-party escrow agent that will be released to certain former Invecas shareholders, subject to continued employment with Cadence, through the first quarter of fiscal 2028. The release of these funds is subject to continuous service and other conditions and is accounted for over the required service period as post-acquisition compensation expense in Cadence’s consolidated income statements. The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Invecas based on their respective fair values on the acquisition date as follows:
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. The definite-lived intangible assets acquired with Cadence’s acquisition of Invecas include agreements and relationships of $15.0 million and tradenames of $0.5 million. These assets will be amortized over a weighted average life of 6.8 years. Other 2024 Acquisitions During the first three quarters of fiscal 2024, Cadence completed two other business combinations for aggregate cash consideration of $28.3 million, net of cash acquired. The total purchase consideration was allocated to assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence recorded $5.5 million of definite-lived intangible assets with a weighted average amortization period of 4.9 years. Cadence also recognized $25.2 million of goodwill, which is primarily attributed to the assembled workforce of the acquired businesses. The goodwill recognized with these acquisitions is not expected to be deductible for tax purposes. 2023 Acquisitions Acquisition of IP Assets from Rambus Inc. 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:
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:
Acquisition of Pulsic, Ltd. 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, subject to continued employment with 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:
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and is not deductible for tax purposes. Definite-lived intangible assets acquired with Cadence’s acquisition of Pulsic were as follows:
Acquisition of Intrinsix Corporation On 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 vertical sectors, including aerospace and defense. The aggregate cash consideration for Cadence’s acquisition of Intrinsix was $34.6 million, net of cash acquired of $0.5 million. With its acquisition of Intrinsix, Cadence recorded $2.6 million of definite-lived intangible assets, $31.6 million of goodwill and $0.9 million net assets. The weighted average amortization period for the definite-lived intangible assets acquired with Cadence’s acquisition of Intrinsix was 5.0 years. The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and is not deductible for tax purposes. 2022 Acquisitions Acquisition of OpenEye Scientific Software, Inc. On August 31, 2022, Cadence acquired all of the outstanding equity of OpenEye, a leading provider of computational molecular modeling and simulation software used by pharmaceutical and biotechnology companies for drug discovery. The addition of OpenEye’s technologies and experienced team with its deep scientific expertise is expected to accelerate Cadence’s Intelligent System Design strategy and broadens Cadence’s System Design and Analysis technology portfolio. The acquisition expands Cadence’s total addressable market, bringing Cadence’s computational software expertise to apply proven algorithmic, simulation and solver advances to life sciences. The aggregate cash consideration for Cadence’s acquisition of OpenEye, net of cash acquired of $13.2 million, was $461.3 million. Subject to service and other conditions, Cadence expects to recognize expense for consideration paid to certain former OpenEye shareholders, subject to continued employment with Cadence, through the first quarter of fiscal 2026. The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of OpenEye based on their respective estimated fair values on the acquisition date as follows:
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and is not deductible for tax purposes. Definite-lived intangible assets acquired with Cadence’s acquisition of OpenEye were as follows:
Acquisition of FFG Holdings Limited On July 14, 2022, Cadence acquired all of the outstanding equity of FFG Holdings Limited (“Future Facilities”), a provider of electronics cooling analysis and energy performance optimization solutions for data center design and operations using physics-based 3D digital twins. The addition of Future Facilities’ technologies and expertise supports Cadence’s Intelligent System Design strategy and broadens its System Design and Analysis technology portfolio with the addition of solutions that enable companies to make informed business decisions about data center design, operations and lifecycle management that reduce their carbon footprint. The aggregate cash consideration for Cadence’s acquisition of Future Facilities, net of cash acquired of $2.8 million, was $100.1 million. Subject to service and other conditions, Cadence expects to recognize expense for consideration paid to certain former Future Facilities shareholders, subject to continued employment with Cadence, subject to service and other conditions, through the third quarter of fiscal 2025. The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Future Facilities based on their respective estimated fair values on the acquisition date as follows:
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce and expected synergies from combining operations of Future Facilities with Cadence. The goodwill will not be deductible for tax purposes. Definite-lived intangible assets acquired with Cadence’s acquisition of Future Facilities were as follows:
Other 2022 Acquisitions During fiscal 2022, Cadence completed three other business combinations for aggregate cash consideration of $53.6 million, net of cash acquired. The total purchase consideration was allocated to assets acquired based on their respective estimated fair values on the acquisition dates. Cadence recorded $23.1 million of acquired intangible assets, which consisted of $13.1 million of existing technology, $3.1 million of agreements and relationships, $0.1 million of tradenames, trademarks and patents, and $6.8 million of in-process technology. The weighted average amortization period for the definite-lived intangible assets acquired with these business combinations was 6.9 years. Cadence also recognized $29.5 million of goodwill, which is primarily attributed to the assembled workforce of the acquired businesses. Of the goodwill recognized with these acquisitions, $27.8 million is expected to be deductible for tax purposes. Pro Forma Financial Information Cadence has not presented pro forma financial information for any of the businesses it acquired during fiscal 2024, 2023 and fiscal 2022 because the results of operations for these businesses are not material to Cadence’s consolidated financial statements. Acquisition-Related Transaction Costs Transaction costs associated with acquisitions, which consist of professional fees and administrative costs, are expensed as incurred and are included in general and administrative expense in Cadence’s consolidated income statement. During fiscal 2024, 2023 and 2022, transaction costs associated with acquisitions were $14.6 million, $12.1 million and $10.1 million, respectively.
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GOODWILL AND ACQUIRED INTANGIBLES | GOODWILL AND ACQUIRED INTANGIBLES Goodwill The changes in the carrying amount of goodwill during fiscal 2024 and 2023 were as follows:
Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2024 and determined that the fair value of Cadence’s single reporting unit exceeded the carrying amount of its net assets and that no impairment existed. Acquired Intangibles, Net Acquired intangibles as of December 31, 2024, were as follows, excluding intangibles that were fully amortized as of December 31, 2023:
During fiscal 2024, Cadence completed certain projects previously included in in-process technology and transferred $6.8 million to existing technology. Acquired intangibles as of December 31, 2023, were as follows, excluding intangibles that were fully amortized as of December 31, 2022:
Amortization expense from existing technology is included in cost of product and maintenance. Amortization expense for fiscal 2024, 2023 and 2022, by consolidated income statement caption, was as follows:
As of December 31, 2024, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
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INCOME TAXES |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | INCOME TAXES The United States enacted the Tax Cuts and Jobs Act in December 2017, which required companies to capitalize all of their research and development (“R&D”) costs, including software development costs, incurred in tax years beginning after December 31, 2021. Beginning in fiscal 2022, Cadence began capitalizing and amortizing R&D costs over five years for domestic research and fifteen years for international research rather than expensing these costs as incurred. The mandatory capitalization requirement increased Cadence’s fiscal 2024, 2023 and 2022 effective tax rates, deferred tax assets, and cash tax payments. Cadence’s income before provision for income taxes included income from the United States and from foreign subsidiaries for fiscal 2024, 2023 and 2022, was as follows:
Cadence’s provision for income taxes was comprised of the following items for fiscal 2024, 2023 and 2022:
During fiscal 2024, the State of California enacted legislation that, for a three-year period beginning in fiscal 2024, will limit Cadence's utilization of California research and development tax credits to $5 million annually and provides the ability to receive a refund of credits that would have otherwise been used to reduce the California tax liability. The legislation increased the cash paid for income taxes and long-term receivables for fiscal 2024 by approximately $33 million and $21 million, respectively. During fiscal 2023, Cadence recognized a tax benefit of approximately $24.8 million due to the recognition of previously unrecognized tax benefits from the expiration of the applicable statute of limitations and a tax benefit of approximately $14.0 million primarily related to a change in R&D expenses that were capitalized in fiscal 2022. During fiscal 2022, Cadence recognized a tax benefit of approximately $68.7 million due to a release of the valuation allowance on its California research and development tax credit deferred tax assets. In evaluating its ability to realize its deferred tax assets, Cadence considered all available positive and negative evidence, including its past operating results, forecasted earnings, future taxable income, and prudent and feasible tax planning strategies. Cadence expects to utilize these tax credits based on current earnings and future taxable income projections. The provision for income taxes differs from the amount estimated by applying the United States statutory federal income tax rates of 21% to income before provision for income taxes for fiscal 2024, 2023, and 2022 as follows:
The components of deferred tax assets and liabilities consisted of the following as of December 31, 2024, and December 31, 2023:
During fiscal 2024, 2023 and 2022 Cadence maintained valuation allowances of $90.6 million, $79.2 million, and $70.1 million, respectively, on certain federal, state and foreign deferred tax assets because the realization of these deferred tax assets requires future income of a specific character or amount that Cadence considered uncertain. The valuation allowance primarily relates to the following: •Tax credits in certain states that are accumulating at a rate greater than Cadence’s capacity to utilize the credits and tax credits in certain states where it is likely the credits will expire unused; •Federal, state and foreign deferred tax assets related to investments and capital losses that can only be utilized against gains that are capital in nature; and •Foreign tax credits that can only be fully utilized if Cadence has sufficient income of a specific character in the future. The valuation allowance increased by $11.4 million and $9.1 million during fiscal 2024 and fiscal 2023, respectively, and decreased by $38.1 million during fiscal 2022. The valuation allowance activity was primarily related to state research and development tax credits and certain foreign tax credits. As of December 31, 2024, Cadence’s operating loss carryforwards were as follows:
As of December 31, 2024, Cadence had tax credit carryforwards of:
_____________ *Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period. Examinations by Tax Authorities Taxing authorities regularly examine Cadence’s income tax returns. As of December 31, 2024, Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include:
Unrecognized Tax Benefits The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2024, 2023 and 2022 are as follows:
_____________ * Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions Cadence is currently under examination or contesting proposed adjustments by various domestic and international taxing authorities. It is reasonably possible that the amount of unrecognized tax positions could decrease by approximately $9.4 million during the next 12 months. The potential decrease could be a combination of settlements with tax authorities and expiration of statute of limitations. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements or examinations in advance of statute of limitation expirations. The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision for income taxes for fiscal 2024, 2023 and 2022 were as follows:
The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 31, 2024, and December 31, 2023, were as follows:
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STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION |
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION | STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION Equity Incentive Plans Cadence’s Omnibus Plan provides for the issuance of both incentive and non-qualified options, restricted stock awards, restricted stock units, stock bonuses and the rights to acquire restricted stock to both executive and non-executive employees. During fiscal 2023, Cadence’s stockholders approved an amendment to the Omnibus Plan to increase the number of shares of common stock authorized for issuance by 6.5 million. As of December 31, 2024, the total number of shares available for future issuance under the Omnibus Plan was 14.0 million. Options granted under the Omnibus Plan have an exercise price not less than the fair market value of the stock on the date of grant. Options and restricted stock generally vest over a period of three years to four years. Options granted under the Omnibus Plan expire seven years from the date of grant. Vesting of restricted stock awards granted under the Omnibus Plan may require the attainment of specified performance criteria. Cadence’s 1995 Directors Stock Incentive Plan (the “Directors Plan”) provides for the issuance of non-qualified options, restricted stock awards and restricted stock units to its non-employee directors. Options granted under the Directors Plan have an exercise price not less than the fair market value of the stock on the date of grant. As of December 31, 2024, the total number of shares available for future issuance under the Directors Plan was 0.4 million. Options granted under the Directors Plan expire after ten years, and options, restricted stock awards and restricted stock units vest one year from the date of grant. Cadence has assumed certain options granted to employees of acquired companies (“Acquired Options”). The Acquired Options were assumed by Cadence outside of its stock option plans, and each option is administered under the terms of the respective original plans of the acquired companies. All of the Acquired Options have been adjusted for the price conversion under the terms of the acquisition agreement between Cadence and the relevant acquired company. If the Acquired Options are canceled, forfeited or expire, they do not become available for future grant. Stock-Based Compensation Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2024, 2023 and 2022 were as follows:
Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2024, 2023 and 2022 as follows:
Stock Options The exercise price of each stock option granted under Cadence’s employee equity incentive plans is equal to or greater than the closing price of Cadence’s common stock on the date of grant. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average grant date fair value of options granted, and the weighted average assumptions used in the model for fiscal 2024, 2023 and 2022 were as follows:
A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2024 is presented below:
Cadence had total unrecognized compensation expense related to stock option grants of $33.3 million as of December 31, 2024, which will be recognized over the remaining vesting period. The remaining weighted average vesting period of unvested awards is 2.2 years. The total intrinsic value of and cash received from options exercised during fiscal 2024, 2023 and 2022 was:
Restricted Stock Generally, restricted stock, which includes restricted stock awards and restricted stock units, vests over three years to four years and is subject to the employee’s continuing service to Cadence. Stock-based compensation expense is recognized ratably over the vesting term. The vesting of certain restricted stock grants is subject to attainment of specified performance criteria. Each fiscal quarter, Cadence estimates the probability of the achievement of these performance goals and recognizes any related stock-based compensation expense using the graded-vesting method. The amount of stock-based compensation expense recognized in any one period can vary based on the attainment or expected attainment of the various performance goals. If such performance goals are not ultimately met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Certain long-term, market-based stock awards granted to executives vest over three to five years and are subject to certain market conditions and the executive’s continuing service to Cadence. Vesting of the market-based awards is contingent upon achieving market conditions of total shareholder return relative to a peer index. Stock-based compensation expense is recognized using the graded-vesting method over the vesting term. If the market-based conditions are not ultimately met, compensation expense previously recognized is not reversed. As of December 31, 2024, Cadence had 1.6 million shares of unvested long-term, market-based stock awards outstanding. Cadence granted market-based awards in fiscal 2023 and fiscal 2022. No market-based awards were granted in fiscal 2024. Compensation expense is calculated using the fair value of the market-based stock awards under Monte Carlo simulation model. The weighted average assumptions used in the model for fiscal 2023 and fiscal 2022 were as follows:
Stock-based compensation expense related to performance-based restricted stock grants and market-based restricted stock grants for fiscal 2024, 2023 and 2022 was as follows:
A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2024 is presented below:
As of December 31, 2024, Cadence had total unrecognized compensation expense related to restricted stock grants of $653.0 million, which will be recognized over a weighted average vesting period of 1.7 years. The total fair value realized by employees upon vesting of restricted stock during fiscal 2024, 2023 and 2022 was:
Employee Stock Purchase Plan Cadence provides an ESPP that enables eligible employees to purchase shares of its common stock. Offering periods under the plan last a duration of six months beginning on either February 1 or August 1, with the purchase dates falling on the last day of the six-month offering period. For the offering periods commencing after February 1, 2022, eligible employees may purchase Cadence’s common stock at a price equal to 85% of the lower of the fair market value at the beginning or the end of the applicable offering period, in an amount not to exceed 15% of their annual base earnings plus bonuses and commissions, and subject to a limit in any calendar year of $25,000. The ESPP may be amended from time to time. During fiscal 2024, Cadence's stockholders approved an amendment to Cadence's Employee Stock Purchase Plan to increase the number of shares of common stock authorized for issuance by 3.5 million. As of December 31, 2024, the total number of shares available for future issuance under the ESPP was 6.2 million. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes option pricing model. The weighted average grant date fair value of purchase rights granted under the ESPP and the weighted average assumptions used in the model for fiscal 2024, 2023 and 2022 were as follows:
Shares of common stock issued under the ESPP for fiscal 2024, 2023 and 2022 were as follows:
Reserved for Future Issuance As of December 31, 2024, Cadence had reserved the following shares of authorized but unissued common stock for future issuance:
_____________ *Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.
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STOCK REPURCHASE PROGRAMS |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class of Stock Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK REPURCHASE PROGRAMS | STOCK REPURCHASE PROGRAMS Cadence is authorized to repurchase shares of its common stock under a publicly announced program that was most recently increased by its Board of Directors in August 2023. 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 fiscal 2024, Cadence repurchased approximately 1.9 million shares on the open market for an aggregate purchase price of $550.0 million. As of December 31, 2024, approximately $0.8 billion of the share repurchase authorization remained available to repurchase shares of Cadence common stock. During fiscal 2023, Cadence repurchased approximately 2.3 million shares on the open market for an aggregate purchase price of $500.0 million. 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 $60.0 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. During fiscal 2022, Cadence repurchased approximately 6.0 million shares on the open market for an aggregate purchase price of $950.1 million. In June 2022, Cadence also entered into an ASR agreement with Royal Bank of Canada to repurchase an aggregate of $100.0 million of Cadence common stock. The ASR agreement was accounted for as two separate transactions (1) a repurchase of common stock and (2) an equity-linked contract on Cadence’s own stock. In June 2022, Cadence received an initial share delivery of approximately 0.5 million shares, which represented the number of shares at a market price equal to $70.0 million. An equity-linked contract for $30.0 million, representing the remaining shares to be delivered by Royal Bank of Canada under the ASR agreement, was recorded to stockholders’ equity. In September 2022, the ASR agreement settled and resulted in a delivery to Cadence of approximately 0.1 million additional shares. In total, approximately 0.6 million shares were repurchased under the ASR agreement at an average price per share of $167.07. The shares received were treated as a repurchase of common stock for purposes of calculating earnings per share. The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during fiscal 2024, 2023 and 2022 were as follows:
_____________ *Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023, and excludes $0.9 million of excise tax. **Includes 109 thousand shares and $30 million equity forward contract from the June 2022 ASR settled in September 2022.
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RESTRUCTURING AND OTHER CHARGES |
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RESTRUCTURING AND OTHER CHARGES | RESTRUCTURING AND OTHER CHARGES From time to time, Cadence has initiated various restructuring plans in an effort to better align its resources with its business strategy. The most recent of these plans was initiated in August 2024 (the “2024 Restructuring Plan”). The charges incurred with the 2024 Restructuring Plan were comprised of severance payments and termination benefits related to headcount reductions and are included in restructuring on Cadence’s consolidated income statements. The following table presents activity for Cadence’s restructuring plans during fiscal 2024, 2023 and 2022:
All liabilities for severance and related benefits under the 2024 Restructuring Plan are included in accounts payable and accrued liabilities on Cadence’s consolidated balance sheet as of December 31, 2024. Cadence expects to make cash payments to settle these liabilities through fiscal 2025.
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OTHER INCOME (EXPENSE), NET |
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| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET Cadence’s other income (expense), net, for fiscal 2024, 2023 and 2022 was as follows:
For additional information relating to Cadence’s investment activity, see Note 14 in the notes to consolidated financial statements.
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NET INCOME PER SHARE |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting. The calculations for basic and diluted net income per share for fiscal 2024, 2023 and 2022 are as follows:
The following table presents shares of Cadence’s common stock outstanding for fiscal 2024, 2023 and 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:
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INVESTMENTS |
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| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INVESTMENTS | INVESTMENTS Investments in Equity Securities 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 consolidated balance sheets. Changes in the fair value of these investments are recorded to other income (expense), net in Cadence’s consolidated income statements. The carrying value of marketable equity investments was $90.4 million and $80.6 million as of December 31, 2024, and December 31, 2023, respectively. 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 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 $97.5 million and $111.1 million as of December 31, 2024 and December 31, 2023, respectively. Cadence records its proportionate share of net income from the investee, offset by amortization of basis differences, to other income, net in Cadence’s consolidated income statements. Cadence recognized losses of $2.5 million, $2.7 million and $3.6 million during fiscal 2024, 2023 and 2022, 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 $26.6 million and $27.2 million as of December 31, 2024 and December 31, 2023, respectively. Gains and losses on these investments were not material to Cadence’s consolidated financial statements for the periods presented. The portion of gains and losses included in Cadence’s consolidated income statements related to equity securities still held at the end of the period were as follows:
Investments in Debt Securities The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on its consolidated balance sheets:
Gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on Cadence’s consolidated balance sheets. As of December 31, 2024, the fair value of available-for-sale debt securities in a continuous unrealized loss position for greater than 12 months was $6.0 million, and the unrealized losses on these securities were not material. As of December 31, 2024, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows:
As of December 31, 2024, Cadence did not intend to sell any of its available-for-sale debt securities in an unrealized loss position, and it was more likely than not that Cadence will hold the securities until maturity or a recovery of the cost basis.
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FAIR VALUE |
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| 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 fiscal years presented. 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 December 31, 2024, and December 31, 2023:
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 Senior Notes are classified within Level 2 of the fair value hierarchy. For additional information relating to Cadence’s debt arrangements, see Note 5 in the notes to consolidated financial statements. Level 3 Measurements During fiscal 2024, Cadence acquired intangible assets of $366.0 million, primarily through its acquisitions of BETA CAE and Invecas. 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 a rate of 10% annually, before applying an assumed royalty rate of 30% and a discount rate of 10%. 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 85% and 92%. The present value of operating cash flows from existing customers was determined using discount rates between 10% and 14%. During fiscal 2023, Cadence acquired intangible assets of $41.0 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 70% and 90%. The present value of operating cash flows from existing customers was determined using discount rates between 12% and 15%. Cadence believes that its estimates and assumptions related to the fair value of its acquired intangible assets and assumed liabilities are reasonable, but significant judgment is involved.
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BALANCE SHEET COMPONENTS |
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| Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Components [Text Block] | BALANCE SHEET COMPONENTS A summary of certain balance sheet components as of December 31, 2024, and December 31, 2023, is as follows:
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LEASES |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lessee, Operating Leases | LEASES Operating lease expense, which includes immaterial amounts of short-term leases, variable lease costs and sublease income, was as follows during fiscal 2024, 2023 and 2022:
Additional activity related to Cadence’s leases during fiscal 2024, 2023 and 2022 was as follows:
ROU lease assets and lease liabilities for Cadence’s operating leases were recorded in the consolidated balance sheets as follows:
Future lease payments included in the measurement of lease liabilities on the consolidated balance sheet as of December 31, 2024, for the following five fiscal years and thereafter were as follows:
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COMMITMENTS AND CONTINGENCIES |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Obligations Cadence had purchase obligations of $78.3 million as of December 31, 2024, that were associated with agreements or commitments for purchases of goods or services. Cadence expects to settle these obligations in the following five fiscal years and thereafter as follows:
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 IP, indemnification obligations, mergers and acquisitions, licensing, contracts, customers, products, distribution and other commercial arrangements and employee relations matters. Cadence is also subject from time to time to inquiries, investigations and regulatory proceedings involving governments and regulatory agencies in the jurisdictions in which Cadence operates, including the ongoing investigations by the Bureau of Industry and Security (“BIS”) of the U.S. Department of Commerce and the U.S. Department of Justice (“DOJ”) regarding certain historical sales by Cadence to customers in China. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and legal proceedings and may revise estimates. As previously disclosed, Cadence has been responding to subpoenas received from BIS in February 2021 and DOJ in November 2023 regarding sales and business activity in China. In December 2024, Cadence began discussions with BIS and DOJ regarding their preliminary findings and a potential resolution. Although Cadence believes it has defenses to the potential claims, Cadence recorded an estimated probable liability as of December 31, 2024 that is immaterial to Cadence's consolidated financial statements. Actual losses could differ materially. Tax Proceedings In December 2022, Cadence received a tax audit assessment, primarily related to value-added taxes, of approximately $49 million from the Korea taxing authorities for years 2017-2019. Cadence was 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 was recorded as a component of other assets in the consolidated balance sheets. During August 2024, the Tax Tribunal cancelled the entire tax audit assessment, and during the fourth quarter of fiscal 2024, Cadence received a refund of the payment previously made to the Korea taxing authorities plus interest. Other Contingencies Cadence provides its customers with a warranty on sales of hardware products, generally for a 90-day period. Cadence did not incur any significant costs related to warranty obligations during fiscal 2024, 2023 or 2022. Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s IP. 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. Cadence did not incur any material losses from indemnification claims during fiscal 2024, 2023 or 2022.
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EMPLOYEE AND DIRECTOR BENEFIT PLANS |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EMPLOYEE AND DIRECTOR BENEFIT PLANS | EMPLOYEE AND DIRECTOR BENEFIT PLANS Cadence maintains various defined contribution plans for its eligible U.S. and non-U.S. employees. For employees in the United States, Cadence maintains a 401(k) savings plan to provide retirement benefits through tax-deferred salary deductions and may make discretionary contributions, as determined by the Board of Directors, which cannot exceed a specified percentage of the annual aggregate salaries of those employees eligible to participate. Cadence’s total contributions made to these plans during fiscal 2024, 2023 and 2022 were as follows:
Executive Officers and Directors may also elect to defer compensation payable to them under Cadence’s NQDC. Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. These investments are classified in other assets in the consolidated balance sheets and gains and losses are recognized as other income (expense), net in the consolidated income statements. Certain of Cadence’s international subsidiaries sponsor defined benefit retirement plans. The unfunded projected benefit obligation for Cadence’s defined benefit retirement plans is recorded in other long-term liabilities in the consolidated balance sheets.
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
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| 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 consolidated statements of comprehensive income. Accumulated other comprehensive loss was comprised of the following as of December 31, 2024, and December 31, 2023:
During the third quarter of fiscal 2024, in anticipation of issuing the New Notes, Cadence entered into a series of treasury lock agreements which fixed benchmark U.S. Treasury rates for an aggregate notional amount of $850 million to hedge the impact of changes in the benchmark interest rate on future interest payments. Upon issuance of the New Notes in September 2024, Cadence settled the treasury lock agreements and incurred a loss of $9.7 million, which will be amortized to interest expense using the effective interest method over the term of the 2034 Notes. For fiscal 2024, 2023 and 2022, there were no significant amounts related to foreign currency translation loss or changes in defined benefit plan liabilities reclassified to net income from accumulated other comprehensive loss.
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SEGMENT REPORTING |
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| 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 operates as one operating segment. Cadence’s chief operating decision maker (“CODM”) is its CEO. The CODM makes decisions on resource allocation and assesses performance of the business based on Cadence’s consolidated results, including net income. For additional information on Cadence’s revenue, including the nature and timing of revenue from contracts with customers, see Note 3 in the notes to consolidated financial statements. The following table presents revenue, significant expenses and net income for fiscal 2024, 2023 and 2022:
_____________ (1) Other segment items includes direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually. 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 fiscal 2024, 2023 and 2022:
The following table presents a summary of long-lived assets by geography as of December 31, 2024, December 31, 2023, and December 31, 2022:
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
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| Pay vs Performance Disclosure | |||
| Net Income (Loss) | $ 1,055,484 | $ 1,041,144 | $ 848,952 |
Insider Trading Arrangements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024
shares
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| Trading Arrangements, by Individual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Material Terms of Trading Arrangement | During the fiscal quarter ended December 31, 2024, 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.
* Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.
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| Non-Rule 10b5-1 Arrangement Adopted | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rule 10b5-1 Arrangement Terminated | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-Rule 10b5-1 Arrangement Terminated | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ita Brennan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trading Arrangements, by Individual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Name | Ita Brennan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Title | Director | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rule 10b5-1 Arrangement Adopted | true | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adoption Date | 12/12/2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Expiration Date | 3/16/2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Arrangement Duration | 459 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Aggregate Available | 720 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insider Trading Policies and Procedures |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Insider Trading Policies and Procedures [Line Items] | |
| Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
| Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] | We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity and availability of our critical systems and information, including our customers’, vendors’, partners’ and employees’ data, including personal information. Our cybersecurity risk management program is guided by frameworks and standards promulgated by the EU, National Institute of Standards and Technology, Cloud Security Alliance (“CSA”) and International Organization for Standardization/International Electrotechnical Commission (“ISO/IEC”). While we seek to maintain ISO/IEC 27001:2013 and ISO/IEC 27017:2015 certifications, and seek to achieve the SOC 2 Type 1 and Type 2 attestations, this does not imply that we specifically or comprehensively comply with technical specification or requirements, only that we use all the above-mentioned standards and regulations as a guide to help us identify, assess and manage cybersecurity risks relevant to our business. Our cybersecurity risk management program is integrated into our overall risk oversight strategy and utilizes common reporting channels and governance processes that apply across other risk areas. We have a dedicated Chief Information Security Officer (“CISO”), who leads our Information Security team responsible for managing our cybersecurity processes, strategy and controls. Certain members of our Information Security team hold cybersecurity certifications, including the Certified Information Systems Security Professional (“CISSP”) and the Certified Information Systems Auditor (“CISA”) designations. Our cybersecurity risk management program includes: •a security incident response plan that includes procedures for responding to cybersecurity incidents; •risk assessment processes designed to help identify cybersecurity risks to our critical systems, information, products, services and our broader enterprise IT environment; •our Information Security team, principally responsible for identifying and mitigating cybersecurity risks, and managing our security controls and our response to cybersecurity incidents; •the use of external service providers, where appropriate, to assess, test (including penetration test) or otherwise assist with certain aspects of our security controls and processes; •global security operations center services through certain service providers; •implementation of new hire and annual data privacy and cybersecurity training of employees, including senior management, and cybersecurity governance training for our Board of Directors; •a cybersecurity insurance policy to cover certain types of costs and losses from cybersecurity incidents; and •a third-party risk management process, including risk assessment and risk rating (using common vulnerability scoring system or similar methodologies based on industry practices), for certain service providers, suppliers and vendors. We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition.
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| Cybersecurity Risk Management Processes Integrated [Flag] | true |
| Cybersecurity Risk Management Processes Integrated [Text Block] | Our cybersecurity risk management program is integrated into our overall risk oversight strategy and utilizes common reporting channels and governance processes that apply across other risk areas. |
| Cybersecurity Risk Management Third Party Engaged [Flag] | true |
| Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true |
| Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | false |
| Cybersecurity Risk Board of Directors Oversight [Text Block] | Our Board of Directors is responsible for overseeing our enterprise risk management activities in general, and our Board committees assist with certain aspects of risk oversight. With respect to cybersecurity risk, our Board of Directors shares certain of the oversight responsibility and processes with the Audit Committee of the Board of Directors (“Audit Committee”). The Audit Committee, comprised entirely of independent directors, reviews and discusses with management our guidelines, policies and practices regarding risk assessment and risk management as they relate to our financial condition, and oversees our financial risk exposures, including planning regarding business continuity and cybersecurity. In addition, the Audit Committee oversees our annual enterprise business risk assessment, which includes the review of cybersecurity risks we face and our associated risk mitigation measures, and receives semi-annual reports from management on cybersecurity matters, including areas such as threat intelligence, major cybersecurity risk areas, regulations and cybersecurity incidents. In addition, management updates the Audit Committee, as necessary, regarding significant cybersecurity incidents, as well as any incidents with lesser impact potential. The Audit Committee reports to the Board of Directors regarding its activities related to cybersecurity. In addition, the Board of Directors also directly receives reports from management on our cybersecurity risk profile and on the performance of our data privacy and cybersecurity risk management program, semi-annually in alternating quarters with the Audit Committee.
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| Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | The Audit Committee, comprised entirely of independent directors, reviews and discusses with management our guidelines, policies and practices regarding risk assessment and risk management as they relate to our financial condition, and oversees our financial risk exposures, including planning regarding business continuity and cybersecurity. |
| Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | The Audit Committee reports to the Board of Directors regarding its activities related to cybersecurity. In addition, the Board of Directors also directly receives reports from management on our cybersecurity risk profile and on the performance of our data privacy and cybersecurity risk management program, semi-annually in alternating quarters with the Audit Committee.
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| Cybersecurity Risk Role of Management [Text Block] | Our management team, including our Chief Information Officer (“CIO”), CISO and the General Counsel, is responsible for assessing and managing material risks from cybersecurity threats, including supervision of our internal security incident response team and our Disclosure Committee comprised of certain of our employees (including any applicable subcommittees thereof). Our management team has relevant expertise in the following:(i) understanding of cybersecurity risks in enterprise operations, including information technology, information security, product security, physical security and legal, (ii) experience in overseeing risk management and understanding risks faced by enterprise operations and (iii) significant operating experience allowing them to provide insight into developing, implementing and assessing our operating plan. In addition, our CISO has over 30 years of broad cybersecurity and information technology risk management experience, is a Certified Information Security Manager (“CISM”) and holds a Master's Degree in computer science and information systems. Our management team supervises efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents, and is responsible for oversight and management of our cybersecurity risk management program. Our management team receives briefings from our internal Information Security team and the Disclosure Committee whenever applicable. Such briefings include information regarding threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in our information technology environment. Our management team also provides quarterly cybersecurity risk management program updates, to the Board of Directors or to the Audit Committee, in alternating quarters.
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| Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
| Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | Our management team, including our Chief Information Officer (“CIO”), CISO and the General Counsel, is responsible for assessing and managing material risks from cybersecurity threats, including supervision of our internal security incident response team and our Disclosure Committee comprised of certain of our employees (including any applicable subcommittees thereof). |
| Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | Our management team has relevant expertise in the following:(i) understanding of cybersecurity risks in enterprise operations, including information technology, information security, product security, physical security and legal, (ii) experience in overseeing risk management and understanding risks faced by enterprise operations and (iii) significant operating experience allowing them to provide insight into developing, implementing and assessing our operating plan. In addition, our CISO has over 30 years of broad cybersecurity and information technology risk management experience, is a Certified Information Security Manager (“CISM”) and holds a Master's Degree in computer science and information systems. |
| Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | Our management team receives briefings from our internal Information Security team and the Disclosure Committee whenever applicable. Such briefings include information regarding threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in our information technology environment. |
| Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
| Principles of Consolidation and Basis of Presentation | The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. Certain prior year information has been reclassified to conform to the current year presentation. Historically, Cadence’s fiscal years were 52- or 53-week periods ending on the Saturday closest to December 31. During 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 beginning with Cadence’s 2023 fiscal year, which began on January 1, 2023. Fiscal year 2022, which is included in this report for comparative purposes, represents a 52-week period. Cadence’s first three fiscal quarters end on March 31, June 30, and September 30.
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| Use of Estimates | Preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
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| New Accounting Pronouncements | Recently Adopted Accounting Standards Segment Reporting In November 2023. the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” intended to improve reportable segment disclosure requirements, primarily through enhanced annual and interim disclosures about significant segment expenses. Cadence adopted this ASU retrospectively during fiscal 2024. See Note 21 in the notes to the consolidated financial statements for further details. New Accounting Standards Not Yet Adopted Income Taxes In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This standard is effective for fiscal years beginning after December 15, 2024, and may be applied on a retrospective or prospective basis. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. Income Statement - Expense Disaggregation Disclosure In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures,” which requires additional disclosure of certain costs and expenses in the notes to the financial statements. The updated standard is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted and will be applied prospectively with the option for retrospective application. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
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| Foreign Operations | Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence’s consolidated entities operating in the United States and certain of its consolidated subsidiaries operating outside the United States. The functional currency for Cadence’s other consolidated entities operating outside of the United States is generally the country’s local currency. Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using an average exchange rate for the period. Cadence includes adjustments from translating assets and liabilities into United States dollars, and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders’ equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in other income (expense), net, in the consolidated income statements.
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| Concentrations of Credit Risk | Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivable, investments and forward contracts. Credit exposure related to Cadence’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts. | ||||||||||||||||||||||||||||||||||||
| Cash and Cash Equivalents | Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents.
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| Receivables | Cadence’s receivables, net includes invoiced accounts receivable and the current portion of unbilled receivables. Unbilled receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time and Cadence has an unconditional right to the payment. Cadence’s accounts receivable and unbilled receivables were initially recorded at the transaction value. Cadence’s long-term receivables balance includes receivable balances to be invoiced more than one year after each balance sheet date. | ||||||||||||||||||||||||||||||||||||
| Allowance for Doubtful Accounts | Cadence assesses its ability to collect outstanding receivables and provides customer-specific allowances, allowances for credit losses and general allowances for the portion of its receivables that are estimated to be uncollectible. The allowances are based on the current creditworthiness of its customers, historical experience, expected credit losses, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions for these allowances are recorded in general and administrative expense in Cadence’s consolidated income statements.
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| Inventories | Inventories are computed at standard costs which approximate actual costs and are valued at the lower of cost or net realizable value based on the first-in, first-out method. Cadence’s inventories include high technology parts and components for complex accelerated hardware systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to manage the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. | ||||||||||||||||||||||||||||||||||||
| Inventory Impairment | Cadence’s policy is to reserve for inventory in excess of future demand forecasts or for other known obsolescence or realization issues. Provisions for obsolescence reserves are recorded as a component of cost of product and maintenance in Cadence’s consolidated income statements. | ||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment | Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows:
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| Software Development Costs | Software development costs are capitalized beginning when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence’s products has typically been of short duration. Costs incurred during fiscal 2024, 2023 and 2022 were not material. | ||||||||||||||||||||||||||||||||||||
| Deferred Sales Commisions | Cadence records an asset for the incremental costs of obtaining a contract with a customer, including direct sales commissions that are earned upon execution of the contract. Cadence uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and renewals and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two to three years for Cadence’s software arrangements and upon delivery for its hardware and IP arrangements. Incremental costs related to initial contracts and renewals are amortized over the period of the arrangement in each case because Cadence pays the same commission rate for both new contracts and renewals. Deferred sales commissions are tested for impairment on an ongoing basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized to the extent that the amount of deferred sales commission exceeds the remaining expected gross margin (remaining revenue less remaining direct costs) on the goods and services to which the deferred sales commission relates. Total capitalized costs were $51.9 million and $47.6 million as of December 31, 2024, and December 31, 2023, respectively, and are included in other assets in Cadence’s consolidated balance sheet. Amortization of these assets was $47.6 million, $41.4 million and $40.5 million during fiscal 2024, 2023 and 2022, respectively, and is included in sales and marketing expense in Cadence’s consolidated income statement.
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| Goodwill | Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence’s single reporting unit may be less than its carrying amount. To assess for impairment, Cadence compares the estimated fair value of its single reporting unit to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired, and no further analysis is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to record an impairment charge. | ||||||||||||||||||||||||||||||||||||
| Long-lived Assets, Including Acquired Intangibles | Cadence’s long-lived assets consist of property, plant and equipment, and acquired intangibles. Acquired intangibles consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, capitalized software, and in-process research and development. These acquired intangibles are acquired through business combinations or direct purchases. Acquired intangibles with definite lives are amortized on a straight-line basis over the estimated economic life of the underlying products and technologies, which range from one year to fifteen years. Acquired intangibles with indefinite lives, or in-process technology, consists of projects that had not reached technological feasibility by the date of acquisition. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the assets might be impaired. Cadence reviews its long-lived assets, including acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value.
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| Leases, Lessee Considerations | Lessee Considerations Cadence has operating leases primarily consisting of facilities with remaining lease terms of approximately one year to fourteen years. Cadence has options to terminate many of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that Cadence will not exercise the early termination option. For certain leases, Cadence has options to extend the lease term for additional periods ranging from one year to ten years. Renewal options are not considered in the remaining lease term unless it is reasonably certain that Cadence will exercise such options. At inception of a contract, Cadence determines an arrangement contains a lease if the arrangement conveys the right to use an identified asset and Cadence obtains substantially all of the economic benefits from the asset and has the ability to direct the use of the asset. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of Topic 842, Cadence combines the lease and non-lease components in determining the lease liabilities and right-of-use (“ROU”) assets. Non-lease components primarily include common-area maintenance and other management fees. Operating lease expense is generally recognized evenly over the term of the lease. Payments under Cadence’s lease agreements are primarily fixed; however, certain agreements contain rental payments that are adjusted periodically based on changes in consumer price and other indices. Changes to payments resulting from changes in indices are expensed as incurred and not included in the measurement of lease liabilities and ROU assets. Cadence’s lease agreements do not provide an implicit borrowing rate, therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. The incremental borrowing rate represents a comparable rate to borrow on a collateralized basis over a similar term and in the economic environment where the leased asset is located.
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| Leases, Lessor Considerations | Lessor Considerations Although most of Cadence’s revenue from its hardware business comes from sales of hardware, Cadence also leases its hardware products to some customers. Cadence determines the existence of a lease when the customer controls the use of the identified hardware for a period of time defined in the lease agreement. Cadence’s leases range in duration up to three years with payments generally collected in equal quarterly installments. Cadence’s leases do not include termination rights or variable pricing and typically do not include purchase rights at the end of the lease. Short-term leases are usually less than two years and are classified as operating leases with revenue recognized and depreciation expensed on a straight-line basis over the term of the lease. Long-term leases are typically for three years and are classified as sales-type leases with revenue and cost of sales recognized upon installation. Cadence’s operating leases and sales-type leases contain both lease and non-lease components. Because the pattern of revenue recognition is the same for both the lease and non-lease components in Cadence’s operating leases, Cadence has elected the practical expedient to not separate lease and related non-lease components and accounts for both components under Topic 842. Cadence allocates value to the lease and non-lease components in its sales-type leases using standalone selling prices (“SSPs”) similar to those used under ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” the current accounting standard governing revenue recognition. When Cadence leases its hardware in the same arrangement as software or IP, Cadence allocates value to each performance obligation using SSPs.
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| Investments in Marketable Equity Securities | Cadence’s investments in marketable equity securities are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence records realized and unrealized holding gains or losses as part of other income (expense), net in the consolidated income statements.
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| Investments in Non-Marketable Equity Securities | Cadence’s non-marketable investments include its investments in privately held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using the measurement alternative when the fair value of the investment is not readily determinable, and Cadence does not have the ability to exercise significant influence, or the equity method of accounting when it is determined that Cadence has the ability to exercise significant influence. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of the investee’s income or loss, net of the effects of any basis differences, to other income (expense), net on a one-quarter lag in Cadence’s consolidated income statements. Cadence reviews its non-marketable investments for impairment on a regular basis by considering investee financial performance and other information received from the investee companies that indicates a decline in value has occurred. For non-marketable equity investments accounted for using the measurement alternative, the carrying amount may also be adjusted based on observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments to the carrying amounts of non-marketable investments are recorded in other income (expense), net in the consolidated income statements. There were no material events or circumstances impacting the carrying amount of our non-marketable investments during the periods presented.
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| Investments in Debt Securities | Cadence’s investments in debt securities are comprised of investments in mortgage-backed and asset backed-securities and are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence classifies its investment in debt securities as available-for-sale, and gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on its consolidated balance sheets. Cadence assesses its portfolio of debt securities for impairment at least quarterly. Cadence records an allowance for credit losses on debt securities when the fair value of a debt security is below its amortized cost, and it is more likely than not that Cadence will either sell the impaired security before recovery of its amortized basis or has the intention to sell the security. Provisions for credit losses on impaired debt securities are recorded as a component of other income (expense), net in the consolidated income statements.
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| Derivative Financial Instruments | Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income (expense), net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less. | ||||||||||||||||||||||||||||||||||||
| Nonqualified Deferred Compensation Trust | Executive officers, senior management and members of Cadence’s Board of Directors may elect to defer compensation payable to them under Cadence’s Nonqualified Deferred Compensation Plan (“NQDC”). Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. The selected investments held in the NQDC accounts are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income (expense), net. These securities are classified in other assets in the consolidated balance sheets because they are not available for Cadence’s use in its operations. Cadence’s obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements.
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| Treasury Stock | Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders’ equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of retained earnings in the consolidated statements of stockholders’ equity. There were no losses recorded as a component of retained earnings by Cadence on the reissuance of treasury stock during fiscal 2024, 2023 or 2022. The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Cadence did not incur any excise tax on the net value of stock repurchases during fiscal 2024. During fiscal 2023, Cadence recorded excise tax of $0.9 million as a component of treasury stock to account for the incremental cost of the shares repurchased.
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| Revenue Recognition | Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which Cadence expects to be entitled in exchange for promised goods or services. Cadence’s performance obligations are satisfied either over time or at a point in time. Product and maintenance revenue includes Cadence’s licenses of software and IP, sales of emulation hardware and the related maintenance on these licenses and sales. Services revenue includes revenue received for performing engineering services (which are generally not related to the functionality of other licensed products), customized IP on a fixed fee basis, and sales from cloud-based solutions that provide customers with software, hardware and services over a period of time. Cadence enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, Cadence allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its SSP. Cadence generates revenue from contracts with customers and applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. Some customers enter into 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. Cadence records a customer deposit liability for amounts received from customers prior to the arrangement meeting the definition of a revenue contract. Software Revenue Recognition Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an arrangement and updates are generally made available throughout the entire term of the arrangement, which is generally two to three years. Cadence’s updates provide continued access to evolving technology as customers’ designs migrate to more advanced nodes and as its customers’ technological requirements evolve. In addition, certain time-based license arrangements include remix rights and unspecified additional products that become commercially available during the term of the agreement. Payments are generally received in equal or near equal installments over the term of the agreement. Multiple software licenses, related updates, and technical support in these time-based arrangements constitute a single, combined performance obligation and revenue is recognized over the term of the license, commencing upon the later of the effective date of the arrangement or transfer of the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer. For certain software arrangements where the updates are not critical to maintaining the utility of the software, Cadence considers the license, related updates and technical support as separate performance obligations. In these instances, the total consideration is allocated across the separate performance obligations using SSPs and the license revenue is recognized upon the later of the delivery or effective date of the contract and the revenue related to the updates and technical support is recognized over the term of the arrangement. Hardware Revenue Recognition Cadence generally has two performance obligations in arrangements involving the sale or lease of hardware products. The first performance obligation is to transfer the hardware product (which includes software integral to the functionality of the hardware product). The second performance obligation is to provide maintenance on hardware and its embedded software, which includes rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. The transaction price allocated to the hardware product is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. Cadence has concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. The transaction price allocated to maintenance is recognized as revenue ratably over the maintenance term. Payments for hardware contracts are generally received upon delivery of the hardware product. Shipping and handling costs are considered fulfillment costs and are included in cost of product and maintenance in Cadence’s consolidated income statements. IP Revenue Recognition Cadence generally licenses IP under nonexclusive license agreements that provide usage rights for specific designs. In addition, for certain of Cadence’s IP license agreements, royalties are collected as customers ship their own products that incorporate Cadence IP. These arrangements generally have two performance obligations—transferring the licensed IP and associated maintenance, which includes rights to technical support, and software updates that are all provided over the maintenance term and have a time-based pattern of transfer to the customer. Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery of the IP or the beginning of the license period and revenue allocated to the maintenance is recognized over the maintenance term. Royalties are recognized as revenue in the quarter in which the applicable Cadence customer ships its products that incorporate Cadence IP. Payments for IP contracts are generally received upon delivery of the IP. Cadence customizes certain IP and revenue related to this customization is recognized as services revenue as described below. Services Revenue Recognition Revenue from service contracts is recognized over time, generally using costs incurred or hours expended to measure progress. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources.
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| Stock-Based Compensation | Cadence recognizes the cost of awards of equity instruments granted to employees in exchange for their services as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. Cadence recognizes the impact of forfeitures on stock-based compensation expense as they occur. The fair value of stock options and purchase rights issued under Cadence’s Employee Stock Purchase Plan (“ESPP”) are calculated using the Black-Scholes option pricing model. The computation of the expected volatility assumption used for new awards is based on a weighting of historical and implied volatilities. When determining the expected term, Cadence reviews historical employee exercise behavior from options having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes for the comparable term in effect at the time of grant. The expected dividend yield used in the calculation is zero because Cadence has not historically paid and currently does not expect to pay dividends in the foreseeable future. The fair value of market-based performance stock awards is calculated using a Monte Carlo simulation model and takes into account the same input assumptions as the Black-Scholes model, as well as the possibility that the market conditions may not be satisfied. Cadence recognizes stock-based compensation expense on the graded-vesting method for market-based performance stock awards.
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| Advertising | Cadence expenses the costs of advertising as incurred. Total advertising expense, including marketing programs and events, was $23.2 million, $21.7 million and $17.0 million during fiscal 2024, 2023 and 2022, respectively, and is included in marketing and sales in the consolidated income statements.
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| Restructuring | Cadence records personnel-related restructuring charges with termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-customary termination benefits when the plan has been communicated to the affected employees. Cadence generally begins recording facilities-related restructuring charges in the period in which a formal plan to vacate an affected facility is established. In connection with facilities-related restructuring plans, Cadence has made certain assumptions and estimates related to facilities, particularly the timing of exit and the ability to sublease. Facility closure costs in restructuring charges primarily includes accelerated ROU asset amortization, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment. Cadence records estimated provisions for termination benefits and outplacement costs along with other personnel-related restructuring costs, asset impairments related to abandoned assets and other costs associated with the restructuring plan. Cadence regularly evaluates the adequacy of its restructuring liabilities and adjusts the balances based on actual costs incurred or changes in estimates and assumptions. Subsequent adjustments to restructuring accruals are classified as restructuring in the consolidated income statements.
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| Accounting for Income Taxes | Cadence accounts for the effect of income taxes in its consolidated financial statements using the asset and liability method. This process involves estimating actual current tax liabilities together with assessing carryforwards and temporary differences resulting from differing treatment of items, such as depreciation, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. Cadence accounts for the United States global intangible low-taxed income as a period expense. Cadence then records a valuation allowance to reduce the deferred tax assets to the amount that Cadence believes is more likely than not to be realized based on its judgment of all available positive and negative evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. This assessment, which is completed on a taxing jurisdiction basis, takes into account a number of types of evidence, including the following: •the nature and history of current or cumulative financial reporting income or losses; •sources of future taxable income; •the anticipated reversal or expiration dates of the deferred tax assets; and •tax planning strategies. Cadence takes a two-step approach to recognizing and measuring the financial statement benefit of uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement of the audit. Cadence classifies interest and penalties on unrecognized tax benefits as income tax expense or benefit.
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| Fair Value of Financial Instruments | Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy: •Level 1 – Quoted prices for identical instruments in active markets; •Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and •Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred.
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| Commitments and Contingencies | At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and legal proceedings and may revise estimates. | ||||||||||||||||||||||||||||||||||||
Accounting Policies (Tables) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Table Text Block] | Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows:
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REVENUE (Tables) |
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| 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 product categories for fiscal 2024, 2023 and 2022:
_____________ * Includes immaterial amount of revenue accounted for under leasing arrangements.
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| Disaggregation of Revenue | The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for fiscal 2024, 2023 and 2022:
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| Contract assets and deferred revenue | Cadence’s contract balances as of December 31, 2024, and December 31, 2023, were as follows:
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RECEIVABLES, NET (Tables) |
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| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current and long-term accounts receivable balances | Cadence’s current and long-term receivables balances as of December 31, 2024, and December 31, 2023, were as follows:
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| Roll forward of allowance for doubtful accounts | Cadence’s provisions for losses on its accounts receivable during fiscal 2024, 2023 and 2022 were as follows:
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DEBT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of debt outstanding | Cadence’s outstanding debt as of December 31, 2024, and December 31, 2023, was as follows:
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ACQUISITIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of BETA CAE based on their respective fair values on the acquisition date as follows:
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Invecas based on their respective fair values on the acquisition date as follows:
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:
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:
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of OpenEye based on their respective estimated fair values on the acquisition date as follows:
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Future Facilities based on their respective estimated fair values on the acquisition date as follows:
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| Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Definite-lived intangible assets acquired with Cadence’s acquisition of BETA CAE were as follows:
Definite-lived intangible assets acquired with Cadence’s acquisition of the SerDes and Memory business from Rambus were as follows:
Definite-lived intangible assets acquired with Cadence’s acquisition of Pulsic were as follows:
Definite-lived intangible assets acquired with Cadence’s acquisition of OpenEye were as follows:
Definite-lived intangible assets acquired with Cadence’s acquisition of Future Facilities were as follows:
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GOODWILL AND ACQUIRED INTANGIBLES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill during fiscal 2024 and 2023 were as follows:
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| Acquired intangibles with finite lives (excluding goodwill), excluding intangibles fully amortized at end of prior fiscal year | Acquired intangibles as of December 31, 2024, were as follows, excluding intangibles that were fully amortized as of December 31, 2023:
Acquired intangibles as of December 31, 2023, were as follows, excluding intangibles that were fully amortized as of December 31, 2022:
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| Amortization of acquired intangibles | Amortization expense for fiscal 2024, 2023 and 2022, by consolidated income statement caption, was as follows:
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| Estimated amortization expense | As of December 31, 2024, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before provision for income taxes | Cadence’s income before provision for income taxes included income from the United States and from foreign subsidiaries for fiscal 2024, 2023 and 2022, was as follows:
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| Components of income taxes provision | Cadence’s provision for income taxes was comprised of the following items for fiscal 2024, 2023 and 2022:
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| Summary of income tax reconciliation | The provision for income taxes differs from the amount estimated by applying the United States statutory federal income tax rates of 21% to income before provision for income taxes for fiscal 2024, 2023, and 2022 as follows:
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| Components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities consisted of the following as of December 31, 2024, and December 31, 2023:
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| Summary of operating loss carryforward | As of December 31, 2024, Cadence’s operating loss carryforwards were as follows:
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| Summary of tax credit carryforwards | As of December 31, 2024, Cadence had tax credit carryforwards of:
_____________ *Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period.
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| Earliest tax years open to examination by jurisdiction | As of December 31, 2024, Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include:
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| Unrecognized tax benefits roll forward | The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2024, 2023 and 2022 are as follows:
_____________ * Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions
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| Interest and penalties recognized in consolidated income statements and balance sheets | The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision for income taxes for fiscal 2024, 2023 and 2022 were as follows:
The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 31, 2024, and December 31, 2023, were as follows:
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STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock based compensation expense and allocation by share based payment award | Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2024, 2023 and 2022 were as follows:
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| Stock based compensation expense and allocation by cost | Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2024, 2023 and 2022 as follows:
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| Fair value of options granted and the weighted-average assumptions | The weighted average grant date fair value of options granted, and the weighted average assumptions used in the model for fiscal 2024, 2023 and 2022 were as follows:
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| Summary of changes in stock options outstanding under equity incentive plans | A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2024 is presented below:
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| Intrinsic value of and cash received from options exercised | The total intrinsic value of and cash received from options exercised during fiscal 2024, 2023 and 2022 was:
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| Fair value of market-based awards valued granted and the weighted-average assumptions | The weighted average assumptions used in the model for fiscal 2023 and fiscal 2022 were as follows:
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| Stock-based compensation expense related to performance-based restricted stock grants | Stock-based compensation expense related to performance-based restricted stock grants and market-based restricted stock grants for fiscal 2024, 2023 and 2022 was as follows:
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| Summary of the changes in restricted stock outstanding under Cadence's equity incentive plans | A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2024 is presented below:
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| Total fair value of restricted stock awards that vested | The total fair value realized by employees upon vesting of restricted stock during fiscal 2024, 2023 and 2022 was:
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| Weighted-average grant date fair value of purchase rights granted under ESPP and weighted average assumptions used in model | The weighted average grant date fair value of purchase rights granted under the ESPP and the weighted average assumptions used in the model for fiscal 2024, 2023 and 2022 were as follows:
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| Shares of common stock issued under Employee Stock Purchase Plan | Shares of common stock issued under the ESPP for fiscal 2024, 2023 and 2022 were as follows:
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| Summary of common stock reserved for future issuance | As of December 31, 2024, Cadence had reserved the following shares of authorized but unissued common stock for future issuance:
_____________ *Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.
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STOCK REPURCHASE PRROGRAMS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class of Stock Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchased and the total cost of shares repurchased | The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during fiscal 2024, 2023 and 2022 were as follows:
_____________ *Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023, and excludes $0.9 million of excise tax. **Includes 109 thousand shares and $30 million equity forward contract from the June 2022 ASR settled in September 2022.
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RESTRUCTURING AND OTHER CHARGES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring reserve rollforward by major type of cost | The following table presents activity for Cadence’s restructuring plans during fiscal 2024, 2023 and 2022:
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OTHER INCOME (EXPENSE), NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (expense), net | Cadence’s other income (expense), net, for fiscal 2024, 2023 and 2022 was as follows:
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NET INCOME PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic and diluted net income per share | The calculations for basic and diluted net income per share for fiscal 2024, 2023 and 2022 are as follows:
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| Potential shares of Cadence's common stock excluded | The following table presents shares of Cadence’s common stock outstanding for fiscal 2024, 2023 and 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:
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INVESTMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) on Securities | The portion of gains and losses included in Cadence’s consolidated income statements related to equity securities still held at the end of the period were as follows:
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| Summary of available-for-sale securities | The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on its consolidated balance sheets:
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| Available-for-sale investments by contractual maturity | As of December 31, 2024, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows:
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FAIR VALUE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 December 31, 2024, and December 31, 2023:
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BALANCE SHEET COMPONENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of certain balance sheet components | A summary of certain balance sheet components as of December 31, 2024, and December 31, 2023, is as follows:
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LEASES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease expense | Operating lease expense, which includes immaterial amounts of short-term leases, variable lease costs and sublease income, was as follows during fiscal 2024, 2023 and 2022:
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| Schedule of supplemental balance sheet information related to leases | Additional activity related to Cadence’s leases during fiscal 2024, 2023 and 2022 was as follows:
ROU lease assets and lease liabilities for Cadence’s operating leases were recorded in the consolidated balance sheets as follows:
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| Table of lease liability maturity | Future lease payments included in the measurement of lease liabilities on the consolidated balance sheet as of December 31, 2024, for the following five fiscal years and thereafter were as follows:
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Commitment and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase obligations | Cadence had purchase obligations of $78.3 million as of December 31, 2024, that were associated with agreements or commitments for purchases of goods or services. Cadence expects to settle these obligations in the following five fiscal years and thereafter as follows:
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EMPLOYEE AND DIRECTOR BENEFIT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions to defined contribution plans | Cadence’s total contributions made to these plans during fiscal 2024, 2023 and 2022 were as follows:
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive income net of tax | Accumulated other comprehensive loss was comprised of the following as of December 31, 2024, and December 31, 2023:
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SEGMENT REPORTING (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated segment income and expenses | The following table presents revenue, significant expenses and net income for fiscal 2024, 2023 and 2022:
_____________ (1) Other segment items includes direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually.
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| Summary of revenue by geography | The following table presents a summary of revenue by geography for fiscal 2024, 2023 and 2022:
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| Summary of long-lived assets by geography | The following table presents a summary of long-lived assets by geography as of December 31, 2024, December 31, 2023, and December 31, 2022:
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Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Property, Plant and Equipment [Line Items] | |||
| Depreciation | $ 96.9 | $ 78.4 | $ 69.1 |
| Equipment and internal-use software | Minimum [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Property, Plant and Equipment, Useful Life | 2 years | ||
| Equipment and internal-use software | Maximum [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Property, Plant and Equipment, Useful Life | 7 years | ||
| Buildings [Member] | Minimum [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Property, Plant and Equipment, Useful Life | 25 years | ||
| Buildings [Member] | Maximum [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Property, Plant and Equipment, Useful Life | 32 years | ||
| Leasehold improvements [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life, Shorter of Lease Term or Asset Utility [Member] | ||
| Building improvements and land improvements [Member] | Maximum [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Property, Plant and Equipment, Useful Life | 32 years | ||
| Furniture and fixtures [Member] | Minimum [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Property, Plant and Equipment, Useful Life | 3 years | ||
| Furniture and fixtures [Member] | Maximum [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Property, Plant and Equipment, Useful Life | 5 years | ||
Summary of Significant Accounting Policies - Deferred Sales Commissions (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Revenue from Contract with Customer [Abstract] | |||
| Capitalized contract costs, net | $ 51.9 | $ 47.6 | |
| Amortization of capitalized contract costs | $ 47.6 | $ 41.4 | $ 40.5 |
Summary of Significant Accounting Policies - Long-lived Assets (Details) |
Dec. 31, 2024 |
|---|---|
| Minimum [Member] | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Finite-lived intangible asset, useful life | 1 year |
| Maximum [Member] | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Finite-lived intangible asset, useful life | 15 years |
Summary of Significant Accounting Policies - Leases (Details) |
Dec. 31, 2024 |
|---|---|
| Minimum [Member] | |
| Lessee, Lease, Description [Line Items] | |
| Lessee, remaining lease term, operating leases | 1 year |
| Lessee, Lease not yet commenced, renewal term, operating leases | 1 year |
| Maximum [Member] | |
| Lessee, Lease, Description [Line Items] | |
| Lessee, remaining lease term, operating leases | 14 years |
| Lessee, Lease not yet commenced, renewal term, operating leases | 10 years |
| Lessor, Operating Lease, Term of Contract | 3 years |
| Lessor, Operating Lease, Term of Contract | 3 years |
Summary of Significant Accounting Policies - Derivative Financial Instruments (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Forward Contracts [Member] | |
| Derivative [Line Items] | |
| Maturity period of forward contracts | 90 days |
Summary of Significant Accounting Policies - Other (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Accounting Policies [Abstract] | |||
| Treasury stock reissued at lower than repurchase price | $ 0 | $ 0 | $ 0 |
| Excise taxes recorded as a component of treasury stock | 900 | ||
| Advertising expense | $ 23,200 | $ 21,700 | $ 17,000 |
REVENUE - Revenue by Product Category (Details) |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|||
| Revenue from External Customer [Line Items] | |||||
| Percentage of product and maintenance revenue by product group | 100.00% | 100.00% | 100.00% | ||
| Core EDA | |||||
| Revenue from External Customer [Line Items] | |||||
| Percentage of product and maintenance revenue by product group | [1] | 71.00% | 76.00% | 76.00% | |
| IP | |||||
| Revenue from External Customer [Line Items] | |||||
| Percentage of product and maintenance revenue by product group | 13.00% | 12.00% | 12.00% | ||
| System Design and Analysis | |||||
| Revenue from External Customer [Line Items] | |||||
| Percentage of product and maintenance revenue by product group | 16.00% | 12.00% | 12.00% | ||
| |||||
REVENUE - Recurring vs. Up-front Revenue (Details) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Revenue from External Customer [Line Items] | |||
| Revenue from Contract with Customer, Timing of Goods or Service, Percent | 100.00% | 100.00% | 100.00% |
| Transferred over Time | |||
| Revenue from External Customer [Line Items] | |||
| Revenue from Contract with Customer, Timing of Goods or Service, Percent | 83.00% | 84.00% | 85.00% |
| Transferred over Time | Revenue arrangement recognized over time | |||
| Revenue from External Customer [Line Items] | |||
| Revenue from Contract with Customer, Timing of Goods or Service, Percent | 80.00% | 81.00% | 83.00% |
| Transferred over Time | Revenue arrangement with non-cancelable commitments | |||
| Revenue from External Customer [Line Items] | |||
| Revenue from Contract with Customer, Timing of Goods or Service, Percent | 3.00% | 3.00% | 2.00% |
| Transferred at Point in Time | |||
| Revenue from External Customer [Line Items] | |||
| Revenue from Contract with Customer, Timing of Goods or Service, Percent | 17.00% | 16.00% | 15.00% |
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Revenue from Contract with Customer [Abstract] | |||
| Contract assets | $ 29,339 | $ 17,554 | |
| Deferred revenue | 852,581 | 763,955 | |
| Revenue recognized from deferred revenue during the period | $ 669,900 | $ 689,700 | $ 540,700 |
REVENUE - Remaining Performance Obligations (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Disaggregation of Revenue [Line Items] | |||
| Unsatisfied performance obligations | $ 6,800.0 | ||
| Remaining performance obligation, amount from non-cancellable IP access agreements | 500.0 | ||
| Revenue recognized from performance obligation satisfied in previous periods | $ 68.0 | $ 55.0 | $ 52.8 |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||
| Disaggregation of Revenue [Line Items] | |||
| Expected remaining performance obligation to be converted to revenue, percentage | 54.00% | ||
| Expected timing of satisfaction of remaining performance obligation, period | 12 months | ||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |||
| Disaggregation of Revenue [Line Items] | |||
| Expected remaining performance obligation to be converted to revenue, percentage | 42.00% | ||
| Expected timing of satisfaction of remaining performance obligation, period | 13 months | ||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |||
| Disaggregation of Revenue [Line Items] | |||
| Expected timing of satisfaction of remaining performance obligation, period | 36 months | ||
RECEIVABLES, NET - Receivables by Category and Concentration (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Jan. 01, 2022 |
|---|---|---|---|---|
| Current and long-term receivables balances | ||||
| Accounts receivable | $ 393,017 | $ 299,814 | ||
| Unbilled accounts receivable | 293,251 | 193,963 | ||
| Long-term receivables | 24,179 | 10,755 | ||
| Total receivables | 710,447 | 504,532 | ||
| Less allowance for doubtful accounts | (5,808) | (4,553) | $ (2,290) | $ (3,692) |
| Total receivables, net | $ 704,639 | $ 499,979 |
RECEIVABLES, NET - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
| Balance at beginning of period | $ 4,553 | $ 2,290 | $ 3,692 |
| Provisions for losses on receivables | 2,078 | 3,325 | 204 |
| Uncollectible accounts written off, net | (823) | (1,062) | (1,606) |
| Balance at end of period | $ 5,808 | $ 4,553 | $ 2,290 |
DEBT - Oustanding Debt by Instrument (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Sep. 10, 2024 |
Dec. 31, 2023 |
Sep. 07, 2022 |
Oct. 09, 2014 |
|---|---|---|---|---|---|
| Debt Instrument [Line Items] | |||||
| Principal | $ 2,500,000 | $ 650,000 | |||
| Unamortized discount and debt issuance costs | 23,817 | 944 | |||
| Current portion of long-term debt | 0 | 349,285 | |||
| Carrying Value | 2,476,183 | 299,771 | |||
| Carrying Value | 2,476,183 | 649,056 | |||
| Term Loan Due 2025 | |||||
| Debt Instrument [Line Items] | |||||
| Aggregate principal amount issued | $ 300,000 | ||||
| Senior Notes [Member] | Senior Notes Due 2024 | |||||
| Debt Instrument [Line Items] | |||||
| Aggregate principal amount issued | 0 | 350,000 | $ 350,000 | ||
| Unamortized discount and debt issuance costs | 0 | 715 | |||
| Current portion of long-term debt | 0 | 349,285 | |||
| Senior Notes [Member] | Senior Notes Due Twenty-Twenty Seven | |||||
| Debt Instrument [Line Items] | |||||
| Aggregate principal amount issued | 500,000 | $ 500,000 | 0 | ||
| Unamortized discount and debt issuance costs | 3,206 | 0 | |||
| Carrying Value | 496,794 | 0 | |||
| Senior Notes [Member] | Senior Notes Due Twenty-Twenty Nine | |||||
| Debt Instrument [Line Items] | |||||
| Aggregate principal amount issued | 1,000,000 | 1,000,000 | 0 | ||
| Unamortized discount and debt issuance costs | 9,666 | 0 | |||
| Carrying Value | 990,334 | 0 | |||
| Senior Notes [Member] | Senior Notes Due Twenty-Thirty Four | |||||
| Debt Instrument [Line Items] | |||||
| Aggregate principal amount issued | 1,000,000 | $ 1,000,000 | 0 | ||
| Unamortized discount and debt issuance costs | 10,945 | 0 | |||
| Carrying Value | 989,055 | 0 | |||
| Notes Payable to Banks | Term Loan Due 2025 | |||||
| Debt Instrument [Line Items] | |||||
| Aggregate principal amount issued | 0 | 300,000 | |||
| Unamortized discount and debt issuance costs | 0 | 229 | |||
| Carrying Value | $ 0 | $ 299,771 |
DEBT - Senior Notes (Details) - Senior Notes [Member] - USD ($) $ in Thousands |
Oct. 15, 2024 |
Dec. 31, 2024 |
Sep. 10, 2024 |
Dec. 31, 2023 |
Oct. 09, 2014 |
|---|---|---|---|---|---|
| Senior Notes Due 2024 | |||||
| Debt Instrument [Line Items] | |||||
| Principal | $ 0 | $ 350,000 | $ 350,000 | ||
| Debt Instrument, Interest Rate, Stated Percentage | 4.375% | ||||
| Repayments of Debt | $ 350,000 | ||||
| Senior Notes Due Twenty-Twenty Seven | |||||
| Debt Instrument [Line Items] | |||||
| Principal | 500,000 | $ 500,000 | 0 | ||
| Debt Instrument, Interest Rate, Stated Percentage | 4.20% | ||||
| Long-Term Debt | $ 496,500 | ||||
| Unamortized discount | 100 | ||||
| Debt issuance costs | 3,500 | ||||
| Fair value of Senior Notes | 495,000 | ||||
| Senior Notes Due Twenty-Twenty Nine | |||||
| Debt Instrument [Line Items] | |||||
| Principal | 1,000,000 | $ 1,000,000 | 0 | ||
| Debt Instrument, Interest Rate, Stated Percentage | 4.30% | ||||
| Long-Term Debt | $ 989,800 | ||||
| Unamortized discount | 1,400 | ||||
| Debt issuance costs | 8,800 | ||||
| Fair value of Senior Notes | 980,000 | ||||
| Senior Notes Due Twenty-Thirty Four | |||||
| Debt Instrument [Line Items] | |||||
| Principal | 1,000,000 | $ 1,000,000 | $ 0 | ||
| Debt Instrument, Interest Rate, Stated Percentage | 4.70% | ||||
| Long-Term Debt | $ 988,800 | ||||
| Unamortized discount | 1,900 | ||||
| Debt issuance costs | $ 9,300 | ||||
| Fair value of Senior Notes | $ 960,000 |
DEBT - Term Loans (Details) - USD ($) $ in Thousands |
May 30, 2024 |
Sep. 07, 2022 |
|---|---|---|
| Term Loan Due 2025 | ||
| Debt Instrument [Line Items] | ||
| Principal | $ 300,000 | |
| Term Loan Due 2026 | ||
| Debt Instrument [Line Items] | ||
| Principal | $ 700,000 |
DEBT - Revolving Credit Facility (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Aug. 31, 2024 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Line of Credit Facility [Line Items] | ||||
| Payments of debt issuance costs | $ 23,828 | $ 0 | $ 425 | |
| Revolving Credit Facility [Member] | ||||
| Line of Credit Facility [Line Items] | ||||
| Credit facility, current borrowing capacity | 1,250,000 | |||
| Credit facility, additional borrowing capacity available | 500,000 | |||
| Credit facility, maximum borrowing capacity | $ 1,750,000 | |||
| Credit facility, maturity date | Aug. 14, 2029 | |||
| Payments of debt issuance costs | $ 1,300 | |||
| SOFR adjustment | 0.10% | |||
| Debt covenant, acquisition amount triggering step up | $ 250,000 | |||
| Minimum [Member] | Revolving Credit Facility [Member] | ||||
| Line of Credit Facility [Line Items] | ||||
| Credit facility, commitment fee percentage | 0.05% | |||
| Credit facility, covenant, debit to EBITDA ratio | 3.5 | |||
| Debt covenant, pro forma leverage ratio | 3.25 | |||
| Maximum [Member] | Revolving Credit Facility [Member] | ||||
| Line of Credit Facility [Line Items] | ||||
| Credit facility, commitment fee percentage | 0.125% | |||
| Credit facility, covenant, debt to EBITDA ratio after step up triggered by acquisition | 4 | |||
| Debt covenant, pro forma leverage ratio | 3.75 | |||
| 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 | 0.625% | |||
| 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 | 1.125% | |||
| Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ||||
| Line of Credit Facility [Line Items] | ||||
| Credit facility, interest rate spread | 0.00% | |||
| Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||||
| Line of Credit Facility [Line Items] | ||||
| Credit facility, interest rate spread | 0.125% | |||
ACQUISITIONS (Details) - Acquistion details shares in Thousands |
12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2024
USD ($)
shares
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
acquisition
|
May 30, 2024
USD ($)
|
Jan. 08, 2024
USD ($)
|
Oct. 02, 2023
USD ($)
|
Sep. 07, 2023
USD ($)
|
May 04, 2023
USD ($)
|
Aug. 31, 2022
USD ($)
|
Jul. 14, 2022
USD ($)
|
|
| Business Acquisition [Line Items] | ||||||||||
| Cash consideration to acquire businesses, net of cash acquired | $ 737,574,000 | $ 198,351,000 | $ 613,785,000 | |||||||
| Goodwill | 2,378,671,000 | 1,535,845,000 | 1,374,268,000 | |||||||
| BETA CAE | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash acquired | $ 91,300,000 | |||||||||
| Business Combination, Consideration Transferred | 1,140,000,000 | |||||||||
| Cash consideration to acquire businesses, net of cash acquired | $ 638,200,000 | |||||||||
| Stock Issued During Period, Shares, Acquisitions | shares | 1,740 | |||||||||
| Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 501,800,000 | |||||||||
| Business Combination, Separately Recognized Transactions, Assets Recognized | 55,800,000 | |||||||||
| Current assets | 118,676,000 | |||||||||
| Goodwill | 822,129,000 | |||||||||
| Acquired intangibles | 345,000,000 | |||||||||
| Other long-term assets | 18,198,000 | |||||||||
| Total assets acquired | 1,304,003,000 | |||||||||
| Current liabilities | 36,465,000 | |||||||||
| Long-term liabilities | 36,250,000 | |||||||||
| Total liabilities assumed | 72,715,000 | |||||||||
| Total purchase consideration | $ 1,231,288,000 | |||||||||
| Finite-lived Intangible Assets Acquired | $ 345,000,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 11 years | |||||||||
| BETA CAE | Existing Technology [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 140,000,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 6 years | |||||||||
| BETA CAE | Agreements and Relationship [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 190,000,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 15 years | |||||||||
| BETA CAE | Tradename Trademark and Patents [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 15,000,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 7 years | |||||||||
| Invecas | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash acquired | $ 23,800,000 | |||||||||
| Cash consideration to acquire businesses, net of cash acquired | $ 71,200,000 | |||||||||
| Current assets | 50,608,000 | |||||||||
| Goodwill | 42,209,000 | |||||||||
| Acquired intangibles | 15,500,000 | |||||||||
| Other long-term assets | 7,414,000 | |||||||||
| Total assets acquired | 115,731,000 | |||||||||
| Current liabilities | 17,114,000 | |||||||||
| Long-term liabilities | 3,647,000 | |||||||||
| Total liabilities assumed | 20,761,000 | |||||||||
| Total purchase consideration | 94,970,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 6 years 9 months 18 days | |||||||||
| Invecas | Agreements and Relationship [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Acquired intangibles assets with finite lives | 15,000,000.0 | |||||||||
| Invecas | Tradename Trademark and Patents [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Acquired intangibles assets with finite lives | $ 500,000 | |||||||||
| Other business combinations | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash consideration to acquire businesses, net of cash acquired | $ 28,300,000 | |||||||||
| Goodwill | 25,200,000 | |||||||||
| Acquired intangibles | $ 5,500,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 4 years 10 months 24 days | |||||||||
| IP Business from Rambus | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash consideration to acquire businesses, net of cash acquired | 108,600,000 | |||||||||
| Current assets | $ 1,460,000 | |||||||||
| Goodwill | 80,999,000 | |||||||||
| Acquired intangibles | 26,000,000 | |||||||||
| Other long-term assets | 2,798,000 | |||||||||
| Total assets acquired | 111,257,000 | |||||||||
| Current liabilities | 2,531,000 | |||||||||
| Long-term liabilities | 142,000 | |||||||||
| Total liabilities assumed | 2,673,000 | |||||||||
| Total purchase consideration | $ 108,584,000 | |||||||||
| Finite-lived Intangible Assets Acquired | $ 26,000,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 5 years 8 months 12 days | |||||||||
| IP Business from Rambus | Existing Technology [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 16,700,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 5 years | |||||||||
| IP Business from Rambus | Agreements and Relationship [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 9,300,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 7 years | |||||||||
| Pulsic. Ltd. | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash acquired | $ 3,800,000 | |||||||||
| Cash consideration to acquire businesses, net of cash acquired | $ 56,100,000 | |||||||||
| Current assets | 4,369,000 | |||||||||
| Goodwill | 47,448,000 | |||||||||
| Acquired intangibles | 12,400,000 | |||||||||
| Other long-term assets | 89,000 | |||||||||
| Total assets acquired | 64,306,000 | |||||||||
| Current liabilities | 1,553,000 | |||||||||
| Long-term liabilities | 2,885,000 | |||||||||
| Total liabilities assumed | 4,438,000 | |||||||||
| Total purchase consideration | $ 59,868,000 | |||||||||
| Finite-lived Intangible Assets Acquired | $ 12,400,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 6 years 9 months 18 days | |||||||||
| Pulsic. Ltd. | Existing Technology [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 8,000,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 6 years 2 months 12 days | |||||||||
| Pulsic. Ltd. | Agreements and Relationship [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 4,100,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 8 years | |||||||||
| Pulsic. Ltd. | Tradename Trademark and Patents [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 300,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 6 years | |||||||||
| Intrinsix | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash acquired | $ 500,000 | |||||||||
| Cash consideration to acquire businesses, net of cash acquired | $ 34,600,000 | |||||||||
| Goodwill | 31,600,000 | |||||||||
| Total assets acquired | $ 900,000 | |||||||||
| Finite-lived Intangible Assets Acquired | $ 2,600,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 5 years | |||||||||
| OpenEye Scientific Software, Inc. | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash acquired | $ 13,200,000 | |||||||||
| Cash consideration to acquire businesses, net of cash acquired | 461,300,000 | |||||||||
| Current assets | 24,890,000 | |||||||||
| Goodwill | 359,580,000 | |||||||||
| Acquired intangibles | 117,400,000 | |||||||||
| Other long-term assets | 6,542,000 | |||||||||
| Total assets acquired | 508,412,000 | |||||||||
| Current liabilities | 15,489,000 | |||||||||
| Long-term liabilities | 18,456,000 | |||||||||
| Total liabilities assumed | 33,945,000 | |||||||||
| Total purchase consideration | $ 474,467,000 | |||||||||
| Finite-lived Intangible Assets Acquired | $ 117,400,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 9 years 9 months 18 days | |||||||||
| OpenEye Scientific Software, Inc. | Existing Technology [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 53,900,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 7 years | |||||||||
| OpenEye Scientific Software, Inc. | Agreements and Relationship [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 61,400,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 12 years 3 months 18 days | |||||||||
| OpenEye Scientific Software, Inc. | Tradename Trademark and Patents [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 2,100,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 7 years | |||||||||
| FFG Holdings Limited ("Future Facilities") | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash acquired | $ 2,800,000 | |||||||||
| Cash consideration to acquire businesses, net of cash acquired | $ 100,100,000 | |||||||||
| Current assets | 7,992,000 | |||||||||
| Goodwill | 67,219,000 | |||||||||
| Acquired intangibles | 38,100,000 | |||||||||
| Other long-term assets | 2,708,000 | |||||||||
| Total assets acquired | 116,019,000 | |||||||||
| Current liabilities | 4,952,000 | |||||||||
| Long-term liabilities | 8,167,000 | |||||||||
| Total liabilities assumed | 13,119,000 | |||||||||
| Total purchase consideration | $ 102,900,000 | |||||||||
| Finite-lived Intangible Assets Acquired | $ 38,100,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 7 years 3 months 18 days | |||||||||
| FFG Holdings Limited ("Future Facilities") | Existing Technology [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 20,900,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 6 years | |||||||||
| FFG Holdings Limited ("Future Facilities") | Agreements and Relationship [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 15,600,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 9 years | |||||||||
| FFG Holdings Limited ("Future Facilities") | Tradename Trademark and Patents [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Finite-lived Intangible Assets Acquired | $ 1,600,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 8 years | |||||||||
| 2022 Other business combination | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Cash consideration to acquire businesses, net of cash acquired | $ 53,600,000 | |||||||||
| Goodwill | 29,500,000 | |||||||||
| Acquired intangibles | $ 23,100,000 | |||||||||
| Acquired definite-lived intangible assets, weighted average useful life | 6 years 10 months 24 days | |||||||||
| Number of businesses acquired | acquisition | 3 | |||||||||
| Goodwill, expected to be tax deductible | $ 27,800,000 | |||||||||
| 2022 Other business combination | Existing Technology [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Acquired intangibles assets with finite lives | 13,100,000 | |||||||||
| 2022 Other business combination | Agreements and Relationship [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Acquired intangibles assets with finite lives | 3,100,000 | |||||||||
| 2022 Other business combination | Tradename Trademark and Patents [Member] | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Acquired intangibles assets with finite lives | 100,000 | |||||||||
| 2022 Other business combination | In-process technology | ||||||||||
| Business Acquisition [Line Items] | ||||||||||
| Acquired intangible assets with infinite lives | $ 6,800,000 | |||||||||
Acquisitions - Acquisition-related transaction costs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Business Acquisition [Line Items] | |||
| Transaction costs associated with acquisitions | $ 14.6 | $ 12.1 | $ 10.1 |
GOODWILL AND ACQUIRED INTANGIBLES - Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Changes in the carrying amount of goodwill | ||
| Balance at beginning of period | $ 1,535,845 | $ 1,374,268 |
| Goodwill resulting from acquisitions | 889,585 | 160,083 |
| Effect of foreign currency translation | (46,759) | 1,494 |
| Balance at end of period | $ 2,378,671 | $ 1,535,845 |
GOODWILL AND ACQUIRED INTANGIBLES - Acquired Intangibles, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
| Gross carrying amount | $ 537,429 | |
| Accumulated amortization | $ (285,197) | (207,386) |
| Acquired intangibles, net | 594,734 | 330,043 |
| In-process technology | 6,800 | |
| Gross carrying amount of acquired intangibles (excluding goodwill) | 879,931 | 544,229 |
| Acquired intangibles, net (excluding goodwill) | 594,734 | 336,843 |
| Existing technology [Member] | ||
| Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
| Gross carrying amount | 465,453 | 325,710 |
| Accumulated amortization | (199,126) | (141,659) |
| Acquired intangibles, net | 266,327 | 184,051 |
| Agreements and relationships [Member] | ||
| Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
| Gross carrying amount | 386,365 | 198,259 |
| Accumulated amortization | (78,605) | (61,395) |
| Acquired intangibles, net | 307,760 | 136,864 |
| Tradenames, trademarks and patents [Member] | ||
| Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year | ||
| Gross carrying amount | 28,113 | 13,460 |
| Accumulated amortization | (7,466) | (4,332) |
| Acquired intangibles, net | $ 20,647 | $ 9,128 |
GOODWILL AND ACQUIRED INTANGIBLES - Amortization Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Goodwill and Intangible Assets Disclosure [Abstract] | |||
| Cost of product and maintenance | $ 60,074 | $ 43,808 | $ 41,348 |
| Amortization of acquired intangibles | 30,375 | 18,162 | 18,470 |
| Total amortization of acquired intangibles | $ 90,449 | $ 61,970 | $ 59,818 |
GOODWILL AND ACQUIRED INTANGIBLES - Estimated Amortization Expense (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Estimated amortization expense | ||
| 2025 | $ 91,486 | |
| 2026 | 86,763 | |
| 2027 | 84,480 | |
| 2028 | 79,023 | |
| 2029 | 64,292 | |
| Thereafter | 188,690 | |
| Acquired intangibles, net | $ 594,734 | $ 330,043 |
INCOME TAXES - Components of Income Before Tax Provision (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
| United States | $ 600,088 | $ 533,442 | $ 402,083 |
| Foreign subsidiaries | 795,731 | 748,484 | 643,280 |
| Income before provision for income taxes | $ 1,395,819 | $ 1,281,926 | $ 1,045,363 |
INCOME TAXES - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Current: | |||
| Federal | $ 281,674 | $ 156,495 | $ 212,380 |
| State and local | 50,430 | 15,933 | 7,280 |
| Foreign | 136,968 | 104,866 | 84,357 |
| Total current | 469,072 | 277,294 | 304,017 |
| Deferred: | |||
| Federal | (130,490) | (87,851) | (79,170) |
| State and local | (5,127) | 25,440 | (50,640) |
| Foreign | 6,880 | 25,899 | 22,204 |
| Total deferred | (128,737) | (36,512) | (107,606) |
| Total provision for income taxes | $ 340,335 | $ 240,782 | $ 196,411 |
INCOME TAXES - Components of Provision for Income Taxes (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|||
| Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
| Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 3,173 | $ 24,768 | $ 7,430 | ||
| Unrecognized tax benefits, decrease resulting from prior period tax positions | [1] | 1,401 | |||
| Increase (decrease) in valuation allowance on deferred tax assets | 11,400 | 9,100 | (38,100) | ||
| California Franchise Tax Board | Research Tax Credit Carryforward [Member] | |||||
| Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
| Increase in Cash Paid For Income Taxes Resulting From Tax Legislation | 33,000 | ||||
| Increase in Long-Term Receivables Resulting From Tax Legislation | $ 21,000 | ||||
| Increase (decrease) in valuation allowance on deferred tax assets | $ 68,700 | ||||
| Change in Capitalized R&D Expenses | |||||
| Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
| Unrecognized tax benefits, decrease resulting from prior period tax positions | $ 14,000 | ||||
| |||||
INCOME TAXES - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
| Provision computed at federal statutory income tax rate | $ 293,122 | $ 269,205 | $ 219,526 |
| State and local income tax, net of federal tax effect | 50,130 | 40,304 | 29,622 |
| Intercompany transfers of intangible property rights | 7,833 | 23,826 | 0 |
| Foreign income tax rate differential | (62,798) | (54,210) | (49,949) |
| Foreign-derived intangible income deduction | (13,344) | (14,253) | (2,335) |
| U.S. tax on foreign entities | 144,222 | 113,011 | 132,563 |
| Stock-based compensation | (6,181) | (26,805) | (17,023) |
| Change in deferred tax asset valuation allowance | 11,441 | 9,077 | (38,073) |
| Tax credits | (135,344) | (130,383) | (105,366) |
| Non-deductible acquisitions-related costs | 11,770 | 6,709 | 4,273 |
| Withholding taxes | 20,175 | 15,300 | 17,459 |
| Tax settlements, foreign | 0 | 4,034 | 0 |
| Increase (decrease) in unrecognized tax benefits | 9,061 | (19,660) | 2,354 |
| Other | 10,248 | 4,627 | 3,360 |
| Total provision for income taxes | $ 340,335 | $ 240,782 | $ 196,411 |
| Effective tax rate | 24.00% | 19.00% | 19.00% |
| United States statutory federal income tax rate | 21.00% | ||
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Deferred tax assets: | |||
| Tax credit carryforwards | $ 110,031 | $ 129,513 | |
| Reserves and accruals | 103,731 | 78,993 | |
| Intangible assets | 487,947 | 506,398 | |
| Capitalized research and development expense for income tax purposes | 368,085 | 242,465 | |
| Operating loss carryforwards | 9,781 | 9,598 | |
| Deferred income | 79,195 | 77,066 | |
| Capital loss carryforwards | 16,861 | 16,483 | |
| Stock-based compensation costs | 34,045 | 27,409 | |
| Depreciation and amortization | 17,228 | 10,671 | |
| Investments | 20,757 | 15,949 | |
| Lease liability | 33,341 | 33,639 | |
| Prepaid expenses | 0 | 3,253 | |
| Total deferred tax assets | 1,281,002 | 1,151,437 | |
| Valuation allowance | (90,603) | (79,162) | $ (70,100) |
| Net deferred tax assets | 1,190,399 | 1,072,275 | |
| Deferred tax liabilities: | |||
| Intangible assets | (107,251) | (83,308) | |
| Undistributed foreign earnings | (76,045) | (64,371) | |
| ROU assets | (33,341) | (33,639) | |
| Investments | 14,171 | 6,318 | |
| Other | (7,869) | (13,455) | |
| Total deferred tax liabilities | (238,677) | (201,091) | |
| Total net deferred tax assets | 951,722 | 871,184 | |
| Increase (decrease) in valuation allowance on deferred tax assets | $ 11,400 | $ 9,100 | $ (38,100) |
INCOME TAXES - Operating Loss and Tax Credit Carryforwards (Details) $ in Thousands |
Dec. 31, 2024
USD ($)
|
|||
|---|---|---|---|---|
| United States federal [Member] | ||||
| Operating Loss Carryforwards [Line Items] | ||||
| Operating loss carry forwards | $ 61 | |||
| Tax credit carryforward | 51,535 | [1] | ||
| California State [Member] | ||||
| Operating Loss Carryforwards [Line Items] | ||||
| Operating loss carry forwards | 26,872 | |||
| Tax credit carryforward | 58 | |||
| States other than California [Member] | ||||
| Operating Loss Carryforwards [Line Items] | ||||
| Operating loss carry forwards | 410 | |||
| Tax credit carryforward | 11,331 | |||
| Foreign Tax Authority [Member] | ||||
| Operating Loss Carryforwards [Line Items] | ||||
| Operating loss carry forwards | 8,077 | |||
| Tax credit carryforward | $ 47,107 | |||
| ||||
INCOME TAXES - Unrecognized Tax Benefits, Interest & Penalties (Details) - USD ($) |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|||
| Unrecognized Tax Benefits | |||||
| Unrecognized tax benefits at the beginning of the fiscal year | $ 94,311,000 | $ 126,073,000 | $ 130,530,000 | ||
| Unrecognized tax benefits, decrease resulting from prior period tax positions | [1] | (1,401,000) | |||
| Unrecognized tax benefits, increase resulting from prior period tax positions | [1] | 10,109,000 | 2,152,000 | ||
| Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 6,669,000 | 2,565,000 | 2,660,000 | ||
| Amount of decreases in unrecognized tax benefits relating the settlements with taxing authorities, including the utilization of tax attributes | 0 | (8,000,000) | 0 | ||
| Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | (3,173,000) | (24,768,000) | (7,430,000) | ||
| Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | (528,000) | (158,000) | (1,839,000) | ||
| Unrecognized tax benefits at the end of the fiscal year | 107,388,000 | 94,311,000 | 126,073,000 | ||
| Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate | 106,420,000 | 93,398,000 | 121,415,000 | ||
| Reasonably possible decrease in unrecognized tax benefits | 9,400,000 | ||||
| Interest and penalties recognized in Income Statements | |||||
| Interest | 3,893,000 | 2,282,000 | 434,000 | ||
| Penalties | 143,000 | 267,000 | $ 7,000 | ||
| Interest and penalties recognized in Balance Sheets | |||||
| Interest | 9,010,000 | 4,813,000 | |||
| Penalties | $ 1,261,000 | $ 0 | |||
| |||||
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Equity Incentive Plans (Details) shares in Millions |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
shares
| |
| 2014 Omnibus Equity Incentive Plan [Member] | |
| Stock Compensation Plans (Textual) [Abstract] | |
| Additional shares authorized and available for issuance under equity incentive plan | 6.5 |
| Number of shares available for issuance under equity incentive plan | 14.0 |
| Expiration period from date of grant for options granted | 7 years |
| One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member] | |
| Stock Compensation Plans (Textual) [Abstract] | |
| Number of shares available for issuance under equity incentive plan | 0.4 |
| Term of options granted under Directors' Plan | 10 years |
| Stock options [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Maximum [Member] | |
| Stock Compensation Plans (Textual) [Abstract] | |
| Vesting period | 4 years |
| Stock options [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Minimum [Member] | |
| Stock Compensation Plans (Textual) [Abstract] | |
| Vesting period | 3 years |
| Employee Stock [Member] | One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member] | |
| Stock Compensation Plans (Textual) [Abstract] | |
| Vesting period | 1 year |
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Expense by Award Type (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation | $ 391,219 | $ 325,611 | $ 270,439 |
| Income tax benefit | 66,080 | 50,994 | 40,612 |
| Stock options [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation | 18,610 | 15,939 | 14,597 |
| Restricted stock [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation | 338,082 | 278,567 | 224,887 |
| Employee stock purchase plans [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation | $ 34,527 | $ 31,105 | $ 30,955 |
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Expense by Income Statement Caption (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Stock based compensation expense and allocation by cost | |||
| Stock-based compensation | $ 391,219 | $ 325,611 | $ 270,439 |
| Cost of product and maintenance [Member] | |||
| Stock based compensation expense and allocation by cost | |||
| Stock-based compensation | 6,402 | 4,500 | 3,818 |
| Cost of services [Member] | |||
| Stock based compensation expense and allocation by cost | |||
| Stock-based compensation | 8,149 | 5,728 | 4,851 |
| Marketing and sales [Member] | |||
| Stock based compensation expense and allocation by cost | |||
| Stock-based compensation | 77,195 | 66,304 | 54,771 |
| Research and development [Member] | |||
| Stock based compensation expense and allocation by cost | |||
| Stock-based compensation | 241,730 | 194,709 | 158,937 |
| General and administrative [Member] | |||
| Stock based compensation expense and allocation by cost | |||
| Stock-based compensation | $ 57,743 | $ 54,370 | $ 48,062 |
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
| Options outstanding beginning balance | 2,367 | ||
| Granted | 212 | ||
| Exercised | (1,231) | ||
| Canceled and forfeited | (26) | ||
| Options outstanding ending balance | 1,322 | 2,367 | |
| Options vested as of December 31, 2024 | 852 | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
| Weighted-Average Exercise Price, Options outstanding beginning balance | $ 107.93 | ||
| Weighted-Average Exercise Price Granted | 297.56 | ||
| Weighted-Average Exercise Price Exercised | 72.19 | ||
| Weighted-Average Exercise Price Canceled and Forfeited | 138.02 | ||
| Weighted-Average Exercise Price, Options outstanding ending balance | 171.08 | $ 107.93 | |
| Weighted Average Exercise Price, Options vested as of December 31, 2024 | $ 141.14 | ||
| Weighted-Average Remaining Contractual Term, Options outstanding as of December 31, 2024 | 4 years | ||
| Weighted-Average Remaining Contractual Term, Options vested as of December 31, 2024 | 3 years 3 months 18 days | ||
| Aggregate Intrinsic Value, Options outstanding as of December 31, 2024 | $ 170,973 | ||
| Aggregate Intrinsic Value, Options vested as of December 31, 2024 | 135,744 | ||
| Intrinsic Value And Cash Received From Stock Options Exercised [Abstract] | |||
| Intrinsic value of options exercised | 266,336 | $ 139,125 | $ 105,242 |
| Cash received from options exercised | $ 88,903 | $ 30,940 | $ 16,014 |
| Stock options [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Dividend yield | 0.00% | 0.00% | 0.00% |
| Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 31.90% | 32.60% | 36.00% |
| Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 4.34% | 3.62% | 2.14% |
| Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 9 months 18 days | 5 years | 4 years 9 months 18 days |
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 103.79 | $ 71.83 | $ 49.16 |
| Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 33,300 | ||
| Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days | ||
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Restricted Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation | $ 391,219 | $ 325,611 | $ 270,439 |
| Restricted stock [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation | $ 338,082 | $ 278,567 | 224,887 |
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
| Unvested shares beginning balance | 5,597 | ||
| Granted | 1,573 | ||
| Vested | (2,233) | ||
| Forfeited | (380) | ||
| Unvested shares ending balance | 4,557 | 5,597 | |
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
| Unvested shares beginning balance, Weighted-Average Grant Date Fair Value | $ 129.35 | ||
| Granted, Weighted-Average Grant date Fair Value | 310.81 | ||
| Vested, Weighted-Average Grant Date Fair Value | 142.37 | ||
| Forfeited, Weighted-Average Grant Date Fair Value | 115.06 | ||
| Unvested shares beginning balance, Weighted-Average Grant Date Fair Value | $ 186.79 | $ 129.35 | |
| Unvested shares as of December 31, 2023, Aggregate Intrinsic Value | $ 1,153,219 | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
| Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 653,000 | ||
| Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | ||
| Fair value of restricted stock realized upon vesting | $ 649,152 | $ 442,556 | 346,003 |
| Restricted stock [Member] | Minimum [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
| Vesting period | 3 years | ||
| Restricted stock [Member] | Maximum [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
| Vesting period | 4 years | ||
| Stock-based compensation expense related to performance-based restricted stock [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation | $ 29,178 | $ 22,922 | $ 17,753 |
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
| Unvested shares ending balance | 1,600 | ||
| Market-based performance restricted stock grants [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Dividend yield | 0.00% | 0.00% | |
| Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 33.60% | 29.10% | |
| Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 3.64% | 1.98% | |
| Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 9 months 18 days | 5 years 1 month 6 days | |
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 132.20 | $ 51.34 | |
| Stock-based compensation | $ 19,934 | $ 30,095 | $ 25,259 |
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, shares in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Purchase rights granted [Member] | |||
| Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
| Dividend yield | 0.00% | 0.00% | 0.00% |
| Expected volatility | 32.10% | 29.90% | 37.20% |
| Risk-free interest rate | 5.11% | 4.50% | 1.71% |
| Expected term (in years) | 6 months | 6 months | 6 months |
| Weighted average fair value of options granted | $ 65.50 | $ 50.95 | $ 43.41 |
| Employee stock purchase plans [Member] | |||
| Shares of Common Stock Issued under Employee Stock Purchase Plan [Abstract] | |||
| Cadence shares purchased under the ESPP | 548 | 647 | 703 |
| Cash received for the purchase of shares under the ESPP | $ 115,335,000 | $ 102,017,000 | $ 89,314,000 |
| Weighted average purchase price per share | $ 210.31 | $ 157.70 | $ 127.12 |
| Purchase Period for Common Stock | 6 months | ||
| Percentage of Lower of Fair Market Value at Beginning or End of Applicable Offering Period Used for Calculating Price of Common Stock to be Purchased by Employees | 85.00% | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 15.00% | ||
| Maximum Amount for which Common Stock can be Purchased by Employees in any Calendar Year | $ 25,000 | ||
| Additional shares authorized and available for issuance under equity incentive plan | 3,500 | ||
| Shares available for future issuance | 6,200 | ||
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Reserved for Future Issuance (Details) shares in Thousands |
Dec. 31, 2024
shares
|
|||
|---|---|---|---|---|
| Common stock reserved for future issuance | ||||
| Common stock reserved for future issuance | 25,119 | |||
| Employee equity incentive plans [Member] | ||||
| Common stock reserved for future issuance | ||||
| Common stock reserved for future issuance | 18,456 | [1] | ||
| Employee stock purchase plans [Member] | ||||
| Common stock reserved for future issuance | ||||
| Common stock reserved for future issuance | 6,232 | |||
| Directors stock option plans [Member] | ||||
| Common stock reserved for future issuance | ||||
| Common stock reserved for future issuance | 431 | [1] | ||
| ||||
STOCK REPURCHASE PROGRAMS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
1 Months Ended | 12 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2023 |
Jun. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Jan. 01, 2022 |
|||||||
| Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
| Shares repurchased | 1,930 | 3,145 | [1] | 6,602 | [2] | |||||||||
| Total cost of repurchased shares | $ 550,026 | $ 700,134 | [1] | $ 1,050,091 | [2] | |||||||||
| Treasury stock acquired | 550,026 | 641,041 | $ 1,020,091 | |||||||||||
| Excise taxes recorded as a component of treasury stock | $ 900 | |||||||||||||
| Stock repurchase program, remaining authorized repurchase amount | $ 800,000 | |||||||||||||
| Share repurchase on open market | ||||||||||||||
| Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
| Shares repurchased | 1,900 | 2,300 | 6,000 | |||||||||||
| Treasury stock acquired | $ 550,000 | $ 500,000 | $ 950,100 | |||||||||||
| Accelerated Share Repurchase Program | ||||||||||||||
| Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
| Shares repurchased | 300 | 600 | 100 | 500 | 900 | 600 | ||||||||
| Shares from equity forward contract settled during the period | 276 | 109 | ||||||||||||
| Treasury stock acquired | $ 140,000 | $ 70,000 | ||||||||||||
| Accelerated share repurchase, prepayment during period | $ 200,000 | $ 100,000 | ||||||||||||
| Value of equity-linked contract under ASR agreement | $ 60,000 | $ 30,000 | ||||||||||||
| Average price per share repurchased under ASR agreement | $ 228.26 | $ 167.07 | ||||||||||||
| ||||||||||||||
RESTRUCTURING AND OTHER CHARGES (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Cadence's Restructuring Plans | |||
| Beginning Balance | $ 2,603 | $ 0 | $ 43 |
| Restructuring | 23,765 | 11,013 | 55 |
| Non-cash changes | (1,030) | (78) | |
| Cash payments | (20,464) | (8,211) | (98) |
| Effect of foreign currency translation | (147) | (121) | 0 |
| Ending Balance | 4,727 | 2,603 | 0 |
| Severance and Benefits [Member] | |||
| Cadence's Restructuring Plans | |||
| Beginning Balance | 2,603 | 0 | 0 |
| Restructuring | 22,735 | 10,935 | 0 |
| Non-cash changes | 0 | 0 | |
| Cash payments | (20,464) | (8,211) | 0 |
| Effect of foreign currency translation | (147) | (121) | 0 |
| Ending Balance | 4,727 | 2,603 | 0 |
| Excess Facilities [Member] | |||
| Cadence's Restructuring Plans | |||
| Beginning Balance | 0 | 0 | 43 |
| Restructuring | 1,030 | 78 | 55 |
| Non-cash changes | (1,030) | (78) | |
| Cash payments | 0 | 0 | (98) |
| Effect of foreign currency translation | 0 | 0 | 0 |
| Ending Balance | $ 0 | $ 0 | $ 0 |
OTHER INCOME (EXPNESE), NET (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Other Income, Net | |||
| Interest income | $ 62,484 | $ 29,637 | $ 10,099 |
| Gains (losses) on investments | 49,593 | 34,602 | (5,425) |
| Gains (losses) on securities in NQDC trust | 11,145 | 10,851 | (8,744) |
| Losses on foreign exchange | (965) | (5,490) | (459) |
| Other expense, net | (1,202) | (2,714) | (860) |
| Total other income (expense), net | $ 121,055 | $ 66,886 | $ (5,389) |
NET INCOME PER SHARE - Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Earnings Per Share [Abstract] | |||
| Net income | $ 1,055,484 | $ 1,041,144 | $ 848,952 |
| Weighted average common shares used to calculate basic net income per share | 271,212 | 269,381 | 271,198 |
| Stock-based awards | 2,621 | 3,367 | 3,813 |
| Weighted average common shares used to calculate diluted net income per share | 273,833 | 272,748 | 275,011 |
| Net income per share - basic (in usd per share) | $ 3.89 | $ 3.86 | $ 3.13 |
| Net income per share - diluted (in usd per share) | $ 3.85 | $ 3.82 | $ 3.09 |
NET INCOME PER SHARE - Anti-Dilutive Shares Outstanding (Details) - shares shares in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Potential shares of Cadence's common stock excluded | |||
| Total potential common shares excluded | 442 | 1,958 | 2,369 |
| Long-term market-based awards | |||
| Potential shares of Cadence's common stock excluded | |||
| Total potential common shares excluded | 0 | 1,381 | 1,565 |
| Options to purchase shares of common stock | |||
| Potential shares of Cadence's common stock excluded | |||
| Total potential common shares excluded | 184 | 345 | 716 |
| Non-vested shares of restricted stock | |||
| Potential shares of Cadence's common stock excluded | |||
| Total potential common shares excluded | 258 | 232 | 88 |
INVESTMENTS - Marketable Equity Investments (Details) - USD ($) $ in Millions |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Investments, Debt and Equity Securities [Abstract] | ||
| Marketable equity securities | $ 90.4 | $ 80.6 |
INVESTMENTS - Non-Marketable Equity Investments, Equity Method Investments (Details) - Privately held company, equity method - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, ownership percentage | 16.00% | ||
| Equity method investments, carrying value | $ 97.5 | $ 111.1 | |
| Income (Loss) from equity method investments | $ 2.5 | $ 2.7 | $ 3.6 |
INVESTMENTS - Non-Marketable Equity Investments, Securities Without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Equity securities without a readily determinable fair value [Line Items] | ||
| Equity Securities without Readily Determinable Fair Value, Amount | $ 124,086 | $ 138,321 |
| Other equity investments not readily marketable [Member] | ||
| Equity securities without a readily determinable fair value [Line Items] | ||
| Equity Securities without Readily Determinable Fair Value, Amount | $ 26,600 | $ 27,200 |
INVESTMENTS - Investments in Equity Securities, FV-NI Gain (Loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Debt and Equity Securities, FV-NI [Line Items] | |||
| Equity Securities, FV-NI, Gain (Loss) | $ 49,653 | $ 34,651 | $ (5,336) |
| Equity Securities, FV-NI, Realized Gain (Loss) | 20,367 | 12,283 | 0 |
| Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 29,286 | $ 22,368 | $ (5,336) |
INVESTMENTS - Marketable Debt Securities (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Debt Securities, Available-for-Sale [Line Items] | ||
| Amortized cost basis of available-for-sale securities | $ 50,604 | $ 49,653 |
| Gross Unrealized Gains | 230 | 375 |
| Gross Unrealized Losses | (582) | (243) |
| Estimated fair value of available-for-sale debt securities | 50,252 | 49,785 |
| Remaining contractual maturity within 1 year | 569 | |
| Remaining contractual maturity between 1 and 5 years | 9,294 | |
| Remaining contractual maturity between 5 and 10 years | 17,882 | |
| Remaining contractual maturity after 10 years | 22,507 | |
| Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises | ||
| Debt Securities, Available-for-Sale [Line Items] | ||
| Amortized cost basis of available-for-sale securities | 50,604 | 49,653 |
| Gross Unrealized Gains | 230 | 375 |
| Gross Unrealized Losses | (582) | (243) |
| Estimated fair value of available-for-sale debt securities | 50,252 | $ 49,785 |
| Fair value of available-for-sale debt securities in a continuous unrealized loss position, 12 months or longer | $ 6,000 |
FAIR VALUE - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Total Liabilities | $ 0 | |
| Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Total Liabilities | 7,533 | |
| Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Total Liabilities | 0 | |
| Fair Value, Recurring | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Assets, Fair Value Disclosure | $ 1,937,160 | 706,341 |
| Total Liabilities | 7,533 | |
| Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Assets, Fair Value Disclosure | 1,886,908 | 647,229 |
| Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Assets, Fair Value Disclosure | 50,252 | 59,112 |
| Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Assets, Fair Value Disclosure | 0 | 0 |
| Fair Value, Recurring | Foreign Exchange Contract | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Foreign currency exchange contracts | 7,533 | |
| Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Foreign currency exchange contracts | 0 | |
| Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Foreign currency exchange contracts | 7,533 | |
| Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Foreign currency exchange contracts | 0 | |
| Fair Value, Recurring | Money Market Funds [Member] | Cash Equivalents | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Cash and Cash Equivalents, Fair Value Disclosure | 1,700,084 | 490,983 |
| Fair Value, Recurring | Money Market Funds [Member] | Cash Equivalents | Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Cash and Cash Equivalents, Fair Value Disclosure | 1,700,084 | 490,983 |
| Fair Value, Recurring | Money Market Funds [Member] | Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
| Fair Value, Recurring | Money Market Funds [Member] | Cash Equivalents | Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
| Fair Value, Recurring | Equity Securities | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Investments, Fair Value Disclosure | 90,374 | 80,575 |
| Fair Value, Recurring | Equity Securities | Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Investments, Fair Value Disclosure | 90,374 | 80,575 |
| Fair Value, Recurring | Equity Securities | Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Investments, Fair Value Disclosure | 0 | 0 |
| Fair Value, Recurring | Equity Securities | Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Investments, Fair Value Disclosure | 0 | 0 |
| Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Investments, Fair Value Disclosure | 50,252 | 49,785 |
| Fair Value, Recurring | Mortgage-backed and asset-backed securities | Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Investments, Fair Value Disclosure | 0 | 0 |
| Fair Value, Recurring | Mortgage-backed and asset-backed securities | Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Investments, Fair Value Disclosure | 50,252 | 49,785 |
| Fair Value, Recurring | Mortgage-backed and asset-backed securities | Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Investments, Fair Value Disclosure | 0 | 0 |
| Fair Value, Recurring | Deferred Compensation Plan Assets | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Other Assets, Fair Value Disclosure | 96,450 | 75,671 |
| Fair Value, Recurring | Deferred Compensation Plan Assets | Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Other Assets, Fair Value Disclosure | 96,450 | 75,671 |
| Fair Value, Recurring | Deferred Compensation Plan Assets | Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Other Assets, Fair Value Disclosure | 0 | 0 |
| Fair Value, Recurring | Deferred Compensation Plan Assets | Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Other Assets, Fair Value Disclosure | $ 0 | 0 |
| Fair Value, Recurring | Foreign Exchange Contract | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Foreign currency exchange contracts | 9,327 | |
| Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 1 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Foreign currency exchange contracts | 0 | |
| Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Foreign currency exchange contracts | 9,327 | |
| Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 3 [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Foreign currency exchange contracts | $ 0 |
FAIR VALUE - Level 3 Measurements (Details) $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
USD ($)
| |
| 2024 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Finite-lived Intangible Assets Acquired | $ 366,000 |
| 2023 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Finite-lived Intangible Assets Acquired | $ 41,000 |
| Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | 2024 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Estimated Customer Retention Rate | 85.00% |
| Discount rate | 10.00% |
| Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | 2023 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Estimated Customer Retention Rate | 70.00% |
| Discount rate | 12.00% |
| Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | 2024 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Estimated Customer Retention Rate | 92.00% |
| Discount rate | 14.00% |
| Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | 2023 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Estimated Customer Retention Rate | 90.00% |
| Discount rate | 15.00% |
| Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Measurement Input, Discount Rate [Member] | 2024 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Estimated Technological Obsolescence Rate | 10.00% |
| Estimated Royalty Rate | 30.00% |
| Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Minimum [Member] | Measurement Input, Discount Rate [Member] | 2023 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Estimated Technological Obsolescence Rate | 10.00% |
| Estimated Royalty Rate | 25.00% |
| Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Maximum [Member] | Measurement Input, Discount Rate [Member] | 2023 acquisitions | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Estimated Technological Obsolescence Rate | 13.00% |
| Estimated Royalty Rate | 30.00% |
BALANCE SHEET COMPONENTS (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Inventories: | ||
| Raw materials | $ 243,244 | $ 162,754 |
| Work-in-process | 1,216 | 0 |
| Finished goods | 13,251 | 18,907 |
| Inventories | 257,711 | 181,661 |
| Prepaid expenses and other: | ||
| Short-term investments | 140,625 | 130,359 |
| Other prepaid expenses and other assets | 293,253 | 166,821 |
| Prepaid expenses and other | 433,878 | 297,180 |
| Property, plant and equipment: | ||
| Equipment and internal-use software | 875,399 | 781,683 |
| Buildings | 137,781 | 131,882 |
| Land | 57,687 | 56,641 |
| Leasehold, building and land improvements | 245,669 | 211,854 |
| Furniture and fixtures | 43,517 | 39,998 |
| In-process capital assets | 14,879 | 17,937 |
| Total cost | 1,374,932 | 1,239,995 |
| Less: Accumulated depreciation and amortization | (916,732) | (836,782) |
| Property, plant and equipment, net | 458,200 | 403,213 |
| Other assets: | ||
| Non-marketable investments | 124,086 | 138,321 |
| ROU lease assets | 146,190 | 150,797 |
| Other long-term assets | 274,465 | 248,254 |
| Other assets | 544,741 | 537,372 |
| Accounts payable and accrued liabilities: | ||
| Trade accounts payable | 5,555 | 91,194 |
| Payroll and payroll-related accruals | 335,232 | 294,108 |
| Other accrued operating liabilities | 291,905 | 191,256 |
| Accounts payable and accrued liabilities | 632,692 | 576,558 |
| Other long-term liabilities: | ||
| Operating lease liabilities | 108,893 | 115,358 |
| Other accrued liabilities | 230,555 | 160,293 |
| Other long-term liabilities | $ 339,448 | $ 275,651 |
LEASES - Operating Lease Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Leases [Abstract] | |||
| Operating lease expense | $ 61,827 | $ 56,805 | $ 49,165 |
LEASES - Additional Lease Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Leases [Abstract] | |||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ 49,978 | $ 46,069 | $ 34,334 |
| ROU assets obtained in exchange for operating lease obligations | $ 42,614 | $ 32,597 | $ 83,758 |
LEASES - ROU Lease Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Leases [Abstract] | ||
| Right-of-use assets [Extensible List] | Other Assets | Other Assets |
| ROU lease assets | $ 146,190 | $ 150,797 |
| Operating lease, liability, current [Extensible List] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current |
| Operating lease, liability, current | $ 41,554 | $ 41,619 |
| Operating lease liabilities | 108,893 | 115,358 |
| Total lease liabilities | $ 150,447 | $ 156,977 |
| Operating lease, weighted average remaining lease term | 5 years 3 months 18 days | 5 years 8 months 12 days |
| Operating lease, weighted average discount rate, | 4.00% | 4.00% |
| Operating lease liability, noncurrent [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
LEASES - Future Lease Payments (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Leases [Abstract] | ||
| 2025 | $ 45,456 | |
| 2026 | 36,750 | |
| 2027 | 23,178 | |
| 2028 | 19,048 | |
| 2029 | 15,136 | |
| Thereafter | 29,783 | |
| Total future lease payments | 169,351 | |
| Less imputed interest | (18,904) | |
| Total operating lease liability | 150,447 | $ 156,977 |
| Operating lease obligations for lease not yet commenced | $ 4,200 |
COMMITMENTS AND CONTINGENCIES - purchase obligations (Details) $ in Thousands |
Dec. 31, 2024
USD ($)
|
|---|---|
| Purchase Obligation, Fiscal Year Maturity [Abstract] | |
| 2025 | $ 58,893 |
| 2026 | 16,084 |
| 2027 | 1,951 |
| 2028 | 1,204 |
| 2029 | 130 |
| Thereafter | 0 |
| Purchase obligations | $ 78,262 |
COMMITMENTS AND CONTINGENCIES (Details Textual) $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
USD ($)
| |
| Loss Contingencies [Line Items] | |
| Korea tax audit assessment, payment | $ 49,000 |
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Contributions to plan | |||
| Contributions to defined contribution plans | $ 45,164 | $ 39,651 | $ 35,464 |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Sep. 05, 2024 |
Dec. 31, 2023 |
|
| Accumulated other comprehensive loss | |||
| Foreign currency translation loss | $ (178,611) | $ (90,678) | |
| Changes in defined benefit plan liabilities | (4,447) | (4,208) | |
| Unrealized losses on derivatives designated as hedging instruments | (7,038) | 0 | |
| Unrealized gains (losses) on available-for-sale debt securities | (352) | 132 | |
| Total accumulated other comprehensive loss | (190,448) | $ (94,754) | |
| Other Comprehensive Income (Loss), before Tax [Abstract] | |||
| Other comprehensive loss, from hedging activities, before reclassification and tax | $ 9,700 | ||
| Treasury Lock [Member] | |||
| Derivative [Line Items] | |||
| Derivative, Notional Amount | $ 850,000 |
SEGMENT REPORTING - Revenue, significant expenses and net income (Details) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
|
Dec. 31, 2024
USD ($)
segment
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
| Revenue | $ 4,641,264 | $ 4,089,986 | $ 3,561,718 | ||
| Depreciation and amortization | 196,935 | 145,292 | 132,088 | ||
| Restructuring | 23,765 | 11,013 | 55 | ||
| Interest income | (62,484) | (29,637) | (10,099) | ||
| Interest expense | 75,999 | 36,185 | 22,934 | ||
| Provision for income taxes | 340,335 | 240,782 | 196,411 | ||
| Net income | $ 1,055,484 | 1,041,144 | 848,952 | ||
| Number of Operating Segments | segment | 1 | ||||
| Reportable Segment | |||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
| Revenue | $ 4,641,264 | 4,089,986 | 3,561,718 | ||
| Salary, benefits and other employee-related costs | 1,936,542 | 1,754,223 | 1,574,910 | ||
| Stock based compensation | 391,219 | 325,611 | 270,439 | ||
| Manufacturing costs | 330,903 | 232,012 | 173,160 | ||
| Facilities and other infrastructure costs | 174,102 | 156,977 | 139,150 | ||
| Depreciation and amortization | 196,935 | 145,292 | 132,088 | ||
| Professional Services | 153,439 | 117,752 | 117,442 | ||
| Restructuring | 23,765 | 11,013 | 55 | ||
| Other segment items | [1] | 25,025 | 58,632 | 96,276 | |
| Interest income | (62,484) | (29,637) | (10,099) | ||
| Interest expense | 75,999 | 36,185 | 22,934 | ||
| Provision for income taxes | 340,335 | 240,782 | 196,411 | ||
| Net income | $ 1,055,484 | $ 1,041,144 | $ 848,952 | ||
| |||||
SEGMENT REPORTING - Summary of Revenue by Geography (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Total revenue | $ 4,641,264 | $ 4,089,986 | $ 3,561,718 |
| United States | |||
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Geographic areas, revenue from external customers | 2,159,703 | 1,694,529 | 1,577,881 |
| Other Americas [Member] | |||
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Geographic areas, revenue from external customers | 93,101 | 65,259 | 53,123 |
| Americas [Member] | |||
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Geographic areas, revenue from external customers | 2,252,804 | 1,759,788 | 1,631,004 |
| China [Member] | |||
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Geographic areas, revenue from external customers | 573,096 | 679,538 | 521,509 |
| Other Asia [Member] | |||
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Geographic areas, revenue from external customers | 855,919 | 766,409 | 629,533 |
| Asia [Member] | |||
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Geographic areas, revenue from external customers | 1,429,015 | 1,445,947 | 1,151,042 |
| Europe, Middle East and Africa [Member] | |||
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Geographic areas, revenue from external customers | 699,241 | 655,078 | 582,350 |
| Japan [Member] | |||
| Entity Wide Disclosure on Geographic Areas Revenue from External Customers | |||
| Geographic areas, revenue from external customers | $ 260,204 | $ 229,173 | $ 197,322 |
SEGMENT REPORTING - Summary of Long-Lived Assets by Geography (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|---|---|---|---|
| Summary of long-lived assets by geography | |||
| Long-lived assets | $ 604,390 | $ 554,010 | $ 541,830 |
| United States | |||
| Summary of long-lived assets by geography | |||
| Long-lived assets | 412,339 | 383,807 | 347,822 |
| Other Americas [Member] | |||
| Summary of long-lived assets by geography | |||
| Long-lived assets | 7,437 | 10,219 | 7,548 |
| Americas [Member] | |||
| Summary of long-lived assets by geography | |||
| Long-lived assets | 419,776 | 394,026 | 355,370 |
| China [Member] | |||
| Summary of long-lived assets by geography | |||
| Long-lived assets | 22,929 | 29,598 | 51,667 |
| Other Asia [Member] | |||
| Summary of long-lived assets by geography | |||
| Long-lived assets | 83,951 | 71,365 | 73,329 |
| Asia [Member] | |||
| Summary of long-lived assets by geography | |||
| Long-lived assets | 106,880 | 100,963 | 124,996 |
| Europe, Middle East and Africa [Member] | |||
| Summary of long-lived assets by geography | |||
| Long-lived assets | 73,551 | 56,449 | 56,959 |
| Japan [Member] | |||
| Summary of long-lived assets by geography | |||
| Long-lived assets | $ 4,183 | $ 2,572 | $ 4,505 |