Stock Compensation Plans and Stock Based Compensation (Tables)

12 Months Ended

Dec. 28, 2013

Disclosure of Compensation Related Costs, Share-based Payments [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 Employee Stock Purchase Plan, or ESPP, during fiscal 2013, 2012 and 2011 were as follows:

	2013		2012		2011
	(In thousands)
Stock options	$	13,100	$	8,752	$	8,685
Restricted stock	49,019		34,838		30,815
ESPP	4,166		3,971		4,088
Total stock-based compensation expense	$	66,285	$	47,561	$	43,588
Income tax benefit	$	16,236	$	12,453	$	1,406

Stock based compensation expense and allocation by cost

Stock-based compensation expense is reflected throughout Cadence's costs and expenses during fiscal 2013, 2012 and 2011 as follows:

	2013		2012		2011
	(In thousands)
Cost of product and maintenance	$	1,596	$	1,317	$	1,468
Cost of services	2,321		1,889		2,105
Marketing and sales	15,642		10,193		10,356
Research and development	32,999		21,516		18,561
General and administrative	13,727		12,646		11,098
Total stock-based compensation expense	$	66,285	$	47,561	$	43,588

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 2013, 2012 and 2011 were as follows:

	2013			2012			2011
Dividend yield	None			None			None
Expected volatility	40.0		%	46.4		%	44.9		%
Risk-free interest rate	0.86		%	0.79		%	2.18		%
Expected term (in years)	4.7			4.6			4.7
Weighted-average fair value of options granted	$	4.93		$	4.57		$	3.93

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 2013 is presented below:

			Weighted- Average		Weighted- Average Remaining Contractual Terms	Aggregate Intrinsic
	Shares		Exercise Price		(Years)	Value
	(In thousands)					(In thousands)
Options outstanding as of December 29, 2012	19,278		$	10.71
Acquired options	1,495		$	2.46
Granted	1,042		$	14.21
Exercised	(2,982	)	$	9.25
Canceled and forfeited	(1,358	)	$	15.88
Options outstanding as of December 28, 2013	17,475		$	10.06	3.4	$	80,673
Options vested as of December 28, 2013	14,104		$	10.27	2.8	$	64,423
Options vested as of, and expected to vest after, December 28, 2013	17,462		$	10.06	3.4	$	80,632

Intrinsic value of and cash received from options exercised

The total intrinsic value of and cash received from options exercised during fiscal 2013, 2012 and 2011 was:

	2013		2012		2011
	(In thousands)
Intrinsic value of options exercised	$	15,114	$	11,493	$	7,255
Cash received from options exercised	$	27,569	$	19,119	$	6,478

Stock-based compensation expense related to performance-based restricted stock grants

Stock-based compensation expense related to performance-based restricted stock grants for fiscal 2013, 2012 and 2011 was as follows:

	2013		2012		2011
	(In thousands)
Stock-based compensation expense related to performance-based grants	$	4,340	$	3,230	$	2,174

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 2013, is presented below:

			Weighted- Average Grant Date		Weighted- Average Remaining Vesting Terms	Aggregate Intrinsic
	Shares		Fair Value		(Years)	Value
	(In thousands)					(In thousands)
Unvested shares as of December 29, 2012	9,444		$	10.40
Granted	5,306		$	15.30
Vested	(4,089	)	$	9.87
Forfeited	(548	)	$	11.77
Unvested shares as of December 28, 2013	10,113		$	13.11	1.1	$	139,761
Unvested shares expected to vest after December 28, 2013	9,418		$	13.08	1.1	$	130,131

Total fair value of restricted stock awards that vested

The total fair value realized by employees upon vesting of restricted stock during fiscal 2013, 2012 and 2011 was:

	2013		2012		2011
	(In thousands)
Fair value of restricted stock realized upon vesting	$	58,091	$	48,249	$	43,756

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 2013, 2012 and 2011 were as follows:

	2013			2012			2011
Dividend yield	None			None			None
Expected volatility	25.7		%	31.4		%	38.4		%
Risk-free interest rate	0.09		%	0.12		%	0.17		%
Expected term (in years)	0.5			0.5			0.5
Weighted-average fair value of options granted	$	3.21		$	2.78		$	2.48

Shares of common stock issued under Employee Stock Purchase Plan

Shares of common stock issued under the ESPP for fiscal 2013, 2012 and 2011 were as follows:

	2013		2012		2011
	(In thousands, except per share amounts)
Cadence shares purchased under the ESPP	1,382		1,548		2,029
Cash received for the purchase of shares under the ESPP	$	15,088	$	13,568	$	13,236
Weighted-average purchase price per share	$	10.91	$	8.77	$	6.52

Summary of common stock reserved for future issuance

As of December 28, 2013, Cadence had reserved the following shares of authorized but unissued common stock for future issuance:

	Shares
	(In thousands)
Employee equity incentive plans*	32,600
2015 Warrants	46,382
2013 Warrants	6,830
Employee stock purchase plans	9,869
Directors stock option plans*	2,475
Total	98,156

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* 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.