Restructuring and Other Charges

12 Months Ended

Jan. 02, 2021

Restructuring and Related Activities [Abstract]

Cadence has initiated restructuring plans in an effort to better align its resources with its business strategy. The charges associated with these restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions, estimated lease losses related to facilities vacated and charges related to abandoned assets. During the fourth quarter of fiscal 2020, Cadence initiated a restructuring plan (the “2020 Restructuring Plan”) and recorded restructuring and other charges of $10.8 million related to severance payments, termination benefits and charges related to vacated facilities. As of January 2, 2021, total liabilities related to the 2020 Restructuring Plan were $8.6 million.

Cadence has also initiated restructuring plans in prior years, including both fiscal 2019 and fiscal 2018 (the “prior restructuring plans”). During fiscal 2020, Cadence revised certain estimates made in connection with the prior restructuring plans and recorded credits of $1.6 million. As of January 2, 2021, total liabilities related to the prior restructuring plans were $0.1 million.

The following table presents activity for Cadence’s restructuring plans during fiscal 2020, 2019 and 2018:


	Severance and Benefits		Excess Facilities		Total
	(In thousands)
Balance, December 30, 2017	$	13,535	$	249	$	13,784
Restructuring and other charges, net	10,268		821		11,089
Cash payments	(12,688)		(192)		(12,880)
Effect of foreign currency translation	61		(30)		31
Balance, December 29, 2018	$	11,176	$	848	$	12,024
Restructuring and other charges, net	8,649		(28)		8,621
Cash payments	(10,714)		(420)		(11,134)
Effect of foreign currency translation	118		9		127
Balance, December 28, 2019	$	9,229	$	409	$	9,638
Restructuring and other charges , net	7,476		1,739		9,215
Cash payments	(9,424)		(773)		(10,197)
Effect of foreign currency translation	40		(3)		37
Balance, January 2, 2021	$	7,321	$	1,372	$	8,693

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


	As of
	January 2, 2021
	(In thousands)
Accounts payable and accrued liabilities	$	8,653
Other long-term liabilities	40
Total liabilities	$	8,693

All liabilities for severance and related benefits under Cadence’s restructuring plans are included in accounts payable and accrued liabilities on Cadence’s consolidated balance sheet as of January 2, 2021. Restructuring liabilities included in other long-term liabilities represent liabilities from vacated facilities, and Cadence expects to make cash payments to settle these liabilities through fiscal 2022.