Revenue (Tables)

9 Months Ended

Oct. 02, 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 nine months ended October 2, 2021 and September 26, 2020:

	Three Months Ended				Nine Months Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Custom Integrated Circuit (“IC”) Design and Simulation	23	%	24	%	23	%	25	%
Digital IC Design and Signoff	29	%	27	%	28	%	28	%
Functional Verification, including Emulation and Prototyping Hardware*	23	%	23	%	25	%	23	%
Intellectual Property (“IP”)	14	%	15	%	13	%	14	%
System Design and Analysis	11	%	11	%	11	%	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 October 2, 2021 and January 2, 2021 were as follows:

	As of
	October 2, 2021		January 2, 2021
	(In thousands)
Contract assets	$	7,834	$	9,709
Deferred revenue	639,352		553,921