Acquisitions and Acquisition-Related Contingent Consideration (Tables)

12 Months Ended

Dec. 29, 2012

Business Combinations [Abstract]

Purchase price allocation

The following table summarizes the allocation of the purchase price for Denali and the estimated amortization period for the acquired intangibles:

	(In thousands)
Cash and cash equivalents	$	46,670
Accounts receivable	11,060
Current assets	1,668
Other assets	630
Acquired intangibles:
Existing technology (six- to nine-year useful lives)	65,700
Agreements and relationships (three- to twelve-year useful lives)	98,800
Tradenames, trademarks and patents (ten-year useful lives)	4,300
Goodwill	152,172
Total assets acquired	$	381,000
Deferred revenue	(11,259		)
Other current liabilities	(5,783		)
Long-term deferred tax liabilities	(67,153		)
Net assets acquired	$	296,805

The following table summarizes the assets acquired and liabilities assumed as part of the Sigrity acquisition:

	(In thousands)
Cash and cash equivalents	$	7,490
Trade receivables	4,254
Property, plant and equipment	238
Other assets	1,004
Acquired intangibles:
Existing technology (four- to ten-year useful lives)	22,200
Agreements and relationships (three- to ten-year useful lives)	17,100
Tradenames and trademarks (nine-year useful lives)	1,300
Goodwill	39,680
Total assets acquired	$	93,266
Deferred revenue	(3,800		)
Other liabilities	(2,547		)
Long-term deferred tax liabilities	(15,079		)
Net assets acquired	$	71,840

Pro forma financial information of acquisition

The financial information in the table below summarizes the combined results of operations of Cadence and Denali, on a pro forma basis, as though the companies had been combined as of the beginning of fiscal 2010. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 3, 2010 or of results that may occur in the future.

	2010
	(In thousands)
Total revenue	$	947,849
Net income	$	109,828

Maximum payment and fair value of contingent consideration

The following table presents the maximum payment and fair value of the contingent consideration for the fiscal 2011 and the fiscal 2010 acquisitions:

			Fair value as of
	Maximum payment		Acquisition Date		December 29, 2012
	(in thousands)
Fiscal 2011 acquisition contingent consideration	$	5,000	$	3,521	$	4,118
Fiscal 2010 acquisition contingent consideration	4,000		858		100