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Stock Compensation Plans and Stock Based Compensation (Tables)
 12 Months Ended
Jan. 01, 2022
Share-based Payment Arrangement [Abstract]  
Stock based compensation expense and allocation by share based payment award
Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2021, 2020 and 2019 were as follows:
202120202019
(In thousands)
Stock options$9,051 $8,062 $6,806 
Restricted stock181,946 173,193 164,078 
ESPP19,093 16,013 10,663 
Total stock-based compensation expense$210,090 $197,268 $181,547 
Income tax benefit$33,958 $31,857 $30,118 
Stock based compensation expense and allocation by cost
Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2021, 2020 and 2019 as follows:
202120202019
(In thousands)
Cost of product and maintenance$4,161 $2,922 $2,759 
Cost of services3,375 3,720 3,510 
Marketing and sales43,264 42,096 39,088 
Research and development131,247 124,999 114,656 
General and administrative28,043 23,531 21,534 
Total stock-based compensation expense$210,090 $197,268 $181,547 
Fair value of options granted and the weighted-average assumptions The weighted average grant date fair value of options granted and the weighted average assumptions used in the model for fiscal 2021, 2020 and 2019 were as follows:
202120202019
Dividend yieldNoneNoneNone
Expected volatility31.7 %25.1 %24.4 %
Risk-free interest rate1.02 %1.36 %2.47 %
Expected term (in years)4.84.84.8
Weighted average fair value of options granted$46.10 $19.38 $14.58 
Summary of changes in stock options outstanding under equity incentive plans
A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2021 is presented below:
Weighted
Average
Weighted
Average
Remaining
Contractual
Terms



Aggregate
Intrinsic
SharesExercise Price(Years)Value
(In thousands)(In thousands)
Options outstanding as of January 2, 20213,934 $36.72 
Granted612 159.25 
Exercised(1,066)22.37 
Forfeited(61)61.38 
Options outstanding as of January 1, 20223,419 $62.69 3.5$422,830 
Options vested as of January 1, 20222,425 $39.16 2.7$356,981 
Intrinsic value of and cash received from options exercised
The total intrinsic value of and cash received from options exercised during fiscal 2021, 2020 and 2019 was:
202120202019
(In thousands)
Intrinsic value of options exercised$129,403 $109,193 $51,625 
Cash received from options exercised23,844 26,474 14,553 
Stock-based compensation expense related to performance-based restricted stock grants
Stock-based compensation expense related to performance-based and market-based performance restricted stock grants for fiscal 2021, 2020 and 2019 was as follows:
202120202019
(In thousands)
Stock-based compensation expense related to performance-based restricted stock$16,225 $14,859 $12,640 
Stock-based compensation expense related to market-based performance stock awards6,453 8,335 7,019 
Summary of the changes in restricted stock outstanding under Cadence's equity incentive plans
A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2021 is presented below:
Weighted
Average Grant Date
Weighted
Average
Remaining
Vesting Terms


Aggregate
Intrinsic
SharesFair Value(Years)Value
(In thousands)(In thousands)
Unvested shares as of January 2, 20216,239 $63.12 
Granted1,688 141.97 
Vested(2,570)61.61 
Forfeited(426)75.92 
Unvested shares as of January 1, 20224,931 $89.91 1.2$918,769 
Total fair value of restricted stock awards that vested
The total fair value realized by employees upon vesting of restricted stock during fiscal 2021, 2020 and 2019 was:
202120202019
(In thousands)
Fair value of restricted stock realized upon vesting$365,298 $358,261 $298,320 
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted average assumptions used in model The weighted average grant date fair value of purchase rights granted under the ESPP and the weighted average assumptions used in the model for fiscal 2021, 2020 and 2019 were as follows:
202120202019
Dividend yieldNoneNoneNone
Expected volatility31.5 %32.6 %27.9 %
Risk-free interest rate0.07 %0.80 %2.23 %
Expected term (in years)0.50.50.5
Weighted average fair value of options granted$33.77 $23.08 $14.37 
Shares of common stock issued under Employee Stock Purchase Plan
Shares of common stock issued under the ESPP for fiscal 2021, 2020 and 2019 were as follows:
202120202019
(In thousands, except per share amounts)
Cadence shares purchased under the ESPP624 785 988 
Cash received for the purchase of shares under the ESPP$63,932 $48,328 $38,290 
Weighted average purchase price per share$102.41 $61.55 $38.74 
Summary of common stock reserved for future issuance
As of January 1, 2022, Cadence had reserved the following shares of authorized but unissued common stock for future issuance:
Shares
(In thousands)
Employee equity incentive plans*19,006 
Employee stock purchase plans4,630 
Directors stock plans*622 
    Total24,258 
_____________
*Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.