Restructuring and Other Charges

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Cadence has initiated various restructuring plans in recent years in an effort to better align its resources with its business strategy. Most recently, in August 2023, Cadence initiated a restructuring plan (the “2023 Restructuring Plan”) and incurred costs comprised of severance payments and termination benefits related to headcount reductions and costs related to impacted facilities. Cadence expects to incur facility-related restructuring charges in future periods until all affected leases are terminated. These facility-related charges are not expected to be material. These costs are included in restructuring on Cadence’s consolidated income statements.

The following table presents activity for Cadence’s restructuring plans during fiscal 2023, 2022 and 2021:


	Severance and Benefits		Excess Facilities		Total
	(In thousands)
Balance, January 2, 2021	$	7,321	$	1,372	$	8,693
Restructuring	(1,480)		432		(1,048)
Cash payments	(5,774)		(1,761)		(7,535)
Effect of foreign currency translation	(67)		—		(67)
Balance, January 1, 2022	$	—	$	43	$	43
Restructuring	—		55		55
Cash payments	—		(98)		(98)
Effect of foreign currency translation	—		—		—
Balance, December 31, 2022	$	—	$	—	$	—
Restructuring	10,935		78		11,013
Non-cash changes	—		(78)		(78)
Cash payments	(8,211)		—		(8,211)
Effect of foreign currency translation	(121)		—		(121)
Balance, December 31, 2023	$	2,603	$	—	$	2,603

All liabilities for severance and related benefits under the 2023 Restructuring Plan are included in accounts payable and accrued liabilities on Cadence’s consolidated balance sheet as of December 31, 2023. Cadence expects to make cash payments to settle these liabilities through fiscal 2024.

Other Termination Benefits

During 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 were included in cost of revenue and each of the operating expense categories included in Cadence’s consolidated income statements. As of December 31, 2023, there were no remaining liabilities related to the voluntary retirement program on Cadence’s consolidated balance sheet.