Revenue (Tables)

6 Months Ended

Jul. 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 and six months ended July 3, 2021 and June 27, 2020:

	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Custom Integrated Circuit (“IC”) Design and Simulation	23	%	24	%	23	%	25	%
Digital IC Design and Signoff	28	%	28	%	28	%	28	%
Functional Verification, including Emulation and Prototyping Hardware*	25	%	24	%	26	%	23	%
Intellectual Property (“IP”)	13	%	14	%	13	%	14	%
System Design and Analysis	11	%	10	%	10	%	10	%
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 July 3, 2021 and January 2, 2021 were as follows:

	As of
	July 3, 2021		January 2, 2021
	(In thousands)
Contract assets	$	6,057	$	9,709
Deferred revenue	684,517		553,921