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Basis of Presentation and Summary of Significant Accounting Policies New Accounting Standards (Tables)
 9 Months Ended
Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of the effects of the adoption of Topic 606
The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated balance sheet as of September 29, 2018:
 
As reported under Topic 606
 
Adjustments
 
Balances under Prior GAAP
 
(In thousands)
Receivables, net
$
240,836

 
$
(21,647
)
 
$
219,189

Prepaid expenses and other
66,979

 
(11,789
)
 
55,190

Long-term receivables
4,395

 
1,453

 
5,848

Other assets
232,540

 
(12,663
)
 
219,877

Accounts payable and accrued liabilities*
212,153

 
(22,623
)
 
189,530

Current portion of deferred revenue
329,168

 
51,315

 
380,483

Long-term portion of deferred revenue
49,343

 
13,639

 
62,982

Retained earnings
674,284

 
(87,726
)
 
586,558

Accumulated other comprehensive loss
(22,351
)
 
749

 
(21,602
)

_____________
* Cadence has certain arrangements under which consideration is received from customers prior to identifying the specific goods or services to be delivered under the contract. Cadence records an accrued liability on a contract-by-contract basis at the end of each reporting period for cash consideration received.
The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated income statement for the three months ended September 29, 2018:
 
As reported under Topic 606
 
Adjustments
 
Balances under Prior GAAP
 
(In thousands, except per share amounts)
Product and maintenance revenue
$
494,990

 
$
(5,505
)
 
$
489,485

Services revenue
37,478

 
(1,004
)
 
36,474

Cost of product and maintenance
36,406

 
(2,654
)
 
33,752

Marketing and sales expense
108,608

 
(1,150
)
 
107,458

Provision for income taxes
241

 
1,953

 
2,194

Net income
99,318

 
(4,658
)
 
94,660

Net income per share - basic
0.36

 
(0.01
)
 
0.35

Net income per share - diluted
0.35

 
(0.01
)
 
0.34


The following table summarizes the effects of adopting Topic 606 on Cadence’s condensed consolidated income statement for the nine months ended September 29, 2018:
 
As reported under Topic 606
 
Adjustments
 
Balances under Prior GAAP
 
(In thousands, except per share amounts)
Product and maintenance revenue
$
1,463,469

 
$
(3,941
)
 
$
1,459,528

Services revenue
104,703

 
2,296

 
106,999

Cost of product and maintenance
118,263

 
(2,791
)
 
115,472

Marketing and sales expense
327,056

 
(5,126
)
 
321,930

Provision for income taxes
20,401

 
2,359

 
22,760

Net income
247,352

 
3,913

 
251,265

Net income per share - basic
0.90

 
0.02

 
0.92

Net income per share - diluted
0.88

 
0.01

 
0.89

Cadence’s net cash provided by operating activities for the nine months ended September 29, 2018 did not change due to the adoption of Topic 606. The following table summarizes the effects of adopting Topic 606 on the financial statement line items of Cadence’s condensed consolidated statement of cash flows for the nine months ended September 29, 2018:
 
As reported under Topic 606
 
Adjustments
 
Balances under Prior GAAP
 
(In thousands)
Net income
$
247,352

 
$
3,913

 
$
251,265

Changes in operating assets and liabilities:
 
 
 
 
 
Receivables
(28,471
)
 
(22,568
)
 
(51,039
)
Prepaid expenses and other
2,018

 
7,883

 
9,901

Other assets
3,571

 
(2,010
)
 
1,561

Accounts payable and accrued liabilities
(41,718
)
 
5,194

 
(36,524
)
Deferred revenue
77,370

 
7,588

 
84,958
Schedule of the cumulative effect of the change on retained earnings
The following table presents the cumulative effect adjustments, net of income tax effects, to beginning retained earnings for new accounting standards adopted by Cadence on the first day of fiscal 2018:
 
Retained Earnings
 
(In thousands)
Balance, December 30, 2017, as previously reported
$
341,003

Cumulative effect adjustment from the adoption of new accounting standards:
 
Revenue from Contracts with Customers (Topic 606)
91,640

Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
2,638

Income taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory
(8,349
)
Balance, December 30, 2017, as adjusted
426,932

Net Income
247,352

Balance, September 29, 2018
$
674,284