Revenue (Tables)

9 Months Ended

Sep. 26, 2020

Revenue from Contract with Customer [Abstract]

Revenue from external customers by product group

The following table shows the percentage of product and related maintenance revenue contributed by each of Cadence’s five product categories and services for the three and nine months ended September 26, 2020 and September 28, 2019:

	Three Months Ended				Nine Months Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Custom IC Design and Simulation	24	%	26	%	25	%	26	%
Digital IC Design and Signoff	27	%	30	%	28	%	30	%
Functional Verification, including Emulation and Prototyping Hardware*	23	%	20	%	23	%	22	%
IP	15	%	15	%	14	%	13	%
System Design and Analysis	11	%	9	%	10	%	9	%
Total	100	%	100	%	100	%	100	%

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^* Includes immaterial amount of revenue accounted for under leasing arrangements.

Contract balances

Cadence’s contract balances as of September 26, 2020 and December 28, 2019 were as follows:

	As of
	September 26, 2020		December 28, 2019
	(In thousands)
Contract assets	$	8,677	$	10,209
Deferred revenue	561,649		428,883