Revenue (Tables)

3 Months Ended

Apr. 02, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

The following table shows the percentage of revenue contributed by each of Cadence’s five product categories for the three months ended April 2, 2022 and April 3, 2021:

	Three Months Ended
	April 2, 2022		April 3, 2021
Custom Integrated Circuit (“IC”) Design and Simulation	22	%	23	%
Digital IC Design and Signoff	27	%	27	%
Functional Verification, including Emulation and Prototyping Hardware*	28	%	26	%
Intellectual Property (“IP”)	13	%	14	%
System Design and Analysis	10	%	10	%
Total	100	%	100	%

_____________

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

The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for the three months ended April 2, 2022 and April 3, 2021:

	Three Months Ended
	April 2, 2022		April 3, 2021
Revenue recognized over time	81	%	82	%
Revenue from arrangements with non-cancelable commitments	2	%	4	%
Recurring revenue	83	%	86	%
Up-front revenue	17	%	14	%
Total	100	%	100	%

Contract balances

Cadence’s contract balances as of April 2, 2022 and January 1, 2022 were as follows:

	As of
	April 2, 2022		January 1, 2022
	(In thousands)
Contract assets	$	19,066	$	6,811
Deferred revenue	707,117		655,090