Restructuring and Other Charges

3 Months Ended

Apr. 01, 2017

Restructuring and Related Activities [Abstract]

Cadence has initiated various restructuring plans in an effort to better align its resources with its business strategy. These restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions, estimated lease losses related to facilities vacated under the restructuring plans and charges related to assets abandoned as part of the restructuring plans. During fiscal 2016, Cadence initiated two restructuring plans, or the 2016 Restructuring Plans, and recorded restructuring and other charges of approximately $40.4 million related to severance payments and termination benefits, including costs associated with a voluntary early retirement program offered to certain employees. During the three months ended April 1, 2017, Cadence revised certain estimates made in connection with the 2016 Restructuring Plans and recorded credits of approximately $1.8 million. As of April 1, 2017, total liabilities related to the 2016 Restructuring Plans were $13.3 million. Cadence expects to make cash payments for severance and related benefits for the 2016 Restructuring Plans through the first quarter of fiscal 2019.

The following table presents activity relating to Cadence’s restructuring plans during the three months ended April 1, 2017:



	Severance and Benefits			Excess Facilities			Total
	(In thousands)
Balance, December 31, 2016	$	24,402		$	58		$	24,460
Restructuring and other charges (credits):
2016 Restructuring Plans	(1,830		)	—			(1,830		)
Prior restructuring plans	—			42			42
Non-cash charges	—			1			1
Cash payments	(9,351		)	(71		)	(9,422		)
Effect of foreign currency translation	114			—			114
Balance, April 1, 2017	$	13,335		$	30		$	13,365

The remaining liability for Cadence’s restructuring plans is recorded in the condensed consolidated balance sheet as follows:



	As of
	April 1, 2017
	(In thousands)
Accounts payable and accrued liabilities	$	12,235
Other long-term liabilities	1,130
Total liabilities	$	13,365