Revenue (Tables)

3 Months Ended

Apr. 03, 2021

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 months ended April 3, 2021 and March 28, 2020:

	Three Months Ended
	April 3, 2021		March 28, 2020
Custom Integrated Circuit (“IC”) Design and Simulation	23	%	25	%
Digital IC Design and Signoff	27	%	29	%
Functional Verification, including Emulation and Prototyping Hardware*	26	%	23	%
Intellectual Property (“IP”)	14	%	14	%
System Design and Analysis	10	%	9	%
Total	100	%	100	%

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

Contract balances

Cadence’s contract balances as of April 3, 2021 and January 2, 2021 were as follows:

	As of
	April 3, 2021		January 2, 2021
	(In thousands)
Contract assets	$	6,978	$	9,709
Deferred revenue	613,674		553,921