Stock Compensation Plans and Stock Based Compensation (Tables)

12 Months Ended

Dec. 30, 2017

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 ESPP during fiscal 2017, 2016 and 2015 were as follows:

	2017		2016		2015
	(In thousands)
Stock options	$	5,417	$	5,649	$	7,903
Restricted stock	117,797		96,989		78,615
ESPP	6,809		6,579		5,823
Total stock-based compensation expense	$	130,023	$	109,217	$	92,341
Income tax benefit	$	36,664	$	30,980	$	24,294

Stock based compensation expense and allocation by cost

Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2017, 2016 and 2015 as follows:

	2017		2016		2015
	(In thousands)
Cost of product and maintenance	$	2,218	$	1,995	$	2,436
Cost of services	3,232		2,911		3,561
Marketing and sales	26,838		22,700		21,654
Research and development	77,222		64,061		49,755
General and administrative	20,513		17,550		14,935
Total stock-based compensation expense	$	130,023	$	109,217	$	92,341

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 2017, 2016 and 2015 were as follows:

	2017			2016			2015
Dividend yield	None			None			None
Expected volatility	21.2		%	31.5		%	26.8		%
Risk-free interest rate	2.01		%	1.21		%	1.61		%
Expected term (in years)	4.8			4.8			5.0
Weighted-average fair value of options granted	$	6.86		$	5.84		$	4.60

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 2017 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 31, 2016	7,117		$	13.61
Granted	820		30.72
Exercised	(1,957	)	11.37
Canceled and forfeited	(197	)	20.52
Options outstanding as of December 30, 2017	5,783		$	16.56	3.8	$	110,114
Options vested as of December 30, 2017	4,104		$	13.72	3.2	$	89,790

Intrinsic value of and cash received from options exercised

The total intrinsic value of and cash received from options exercised during fiscal 2017, 2016 and 2015 was:

	2017		2016		2015
	(In thousands)
Intrinsic value of options exercised	$	45,643	$	44,835	$	67,363
Cash received from options exercised	22,255		30,984		52,261

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

Stock-based compensation expense related to performance-based restricted stock grants for fiscal 2017, 2016 and 2015 was as follows:

	2017		2016		2015
	(In thousands)
Stock-based compensation expense related to performance-based grants	$	8,224	$	9,195	$	5,544

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 2017, 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 31, 2016	12,082		$	20.40
Granted	5,909		34.48
Vested	(5,121	)	20.75
Forfeited	(902	)	21.49
Unvested shares as of December 30, 2017	11,968		$	27.11	1.1	$	500,231

Total fair value of restricted stock awards that vested

The total fair value realized by employees upon vesting of restricted stock during fiscal 2017, 2016 and 2015 was:

	2017		2016		2015
	(In thousands)
Fair value of restricted stock realized upon vesting	$	174,548	$	113,114	$	99,564

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 2017, 2016 and 2015 were as follows:

	2017			2016			2015
Dividend yield	None			None			None
Expected volatility	20.4		%	24.4		%	22.9		%
Risk-free interest rate	0.92		%	0.43		%	0.13		%
Expected term (in years)	0.5			0.5			0.5
Weighted-average fair value of options granted	$	6.64		$	4.85		$	4.23

Shares of common stock issued under Employee Stock Purchase Plan

Shares of common stock issued under the ESPP for fiscal 2017, 2016 and 2015 were as follows:

	2017		2016		2015
	(In thousands, except per share amounts)
Cadence shares purchased under the ESPP	1,270		1,471		1,519
Cash received for the purchase of shares under the ESPP	$	26,709	$	24,450	$	22,449
Weighted-average purchase price per share	$	21.04	$	16.62	$	14.78

Summary of common stock reserved for future issuance

As of December 30, 2017, Cadence had reserved the following shares of authorized but unissued common stock for future issuance:

	Shares
	(In thousands)
Employee equity incentive plans*	18,663
Employee stock purchase plans	3,920
Directors stock plans*	1,298
Total	23,881

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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.