Restructuring and Other Termination Benefits

6 Months Ended

Jul. 03, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND OTHER TERMINATION BENEFITS

Restructuring

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 and charges related to impacted facilities and are included in restructuring and other charges on Cadence’s condensed consolidated income statements.

The following table presents activity for Cadence’s restructuring plans during the six months ended July 3, 2021:


	Severance and Benefits		Facilities		Total
	(In thousands)
Balance, January 2, 2021	$	7,321	$	1,372	$	8,693
Restructuring and other credits	(1,135)		389		(746)
Cash payments	(5,340)		(1,314)		(6,654)
Effect of foreign currency translation	(67)		(1)		(68)
Balance, July 3, 2021	$	779	$	446	$	1,225

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


	As of
	July 3, 2021
	(In thousands)
Accounts payable and accrued liabilities	$	1,207
Other long-term liabilities	18
Total restructuring liabilities	$	1,225

All liabilities for severance and related benefits under Cadence’s restructuring plans are included in accounts payable and accrued liabilities on Cadence’s condensed consolidated balance sheets as of July 3, 2021. Restructuring liabilities included in other long-term liabilities represent liabilities from impacted facilities, and Cadence expects to make cash payments to settle these liabilities through fiscal 2022.

Other Termination Benefits

During the second quarter of fiscal 2021, Cadence offered a voluntary retirement program to eligible employees in the United States. This program resulted in a one-time charge of $26.8 million for voluntary termination and post-employment benefits. These charges are included in each category of costs and expenses on Cadence’s condensed consolidated income statements. As of July 3, 2021, liabilities related to the voluntary retirement program were $26.6 million and were included in accounts payable and accrued liabilities and other long-term liabilities on Cadence’s condensed consolidated balance sheet. Cadence expects to make cash payments to settle these liabilities through fiscal 2023, including $22.3 million that is expected to be paid within the next twelve months.