Revenue (Tables)

12 Months Ended

Jan. 02, 2021

Revenue from Contract with Customer [Abstract]

Revenue from external customers by product category

The following table shows the percentage of product and related maintenance revenue contributed by each of Cadence’s five product categories and services for fiscal 2020 and 2019:

	2020		2019		2018
Custom IC Design and Simulation	25	%	25	%	26	%
Digital IC Design and Signoff	29	%	30	%	29	%
Functional Verification, including Emulation and Prototyping Hardware*	22	%	23	%	24	%
IP	14	%	13	%	12	%
System Design and Analysis	10	%	9	%	9	%
Total	100	%	100	%	100	%

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

Contract assets and deferred revenue

Cadence’s contract balances as of January 2, 2021 and December 28, 2019 were as follows:

	As of
	January 2, 2021		December 28, 2019
	(In thousands)
Contract assets	$	9,709	$	10,209
Deferred revenue	553,921		428,883