Stock Compensation Plans and Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Stock Compensation Plans and Stock Based Compensation [Abstract]

Stock based compensation expense and allocation by share based payment award

	2011		2010		2009
	(In thousands)
Stock options	$	8,685	$	7,924	$	10,606
Restricted stock		30,815		31,725		35,680
ESPP		4,088		3,811		8,420
Total stock-based compensation expense	$	43,588	$	43,460	$	54,706
Income tax benefit	$	1,406	$	1,370	$	1,536

Stock based compensation expense and allocation by cost

	2011		2010		2009
	(In thousands)
Cost of product	$	111	$	117	$	151
Cost of services		2,105		2,225		3,321
Cost of maintenance		1,357		1,435		2,126
Marketing and sales		10,356		9,765		12,285
Research and development		18,561		18,324		26,364
General and administrative		11,098		11,594		10,459
Total stock-based compensation expense	$	43,588	$	43,460	$	54,706

Fair value of options granted and the weighted-average assumptions

	2011		2010		2009
Dividend yield		None		None		None
Expected volatility		44.9%		45.9%		65.8%
Risk-free interest rate		2.18%		2.45%		1.91%
Expected term (in years)		4.7		4.6		4.5
Weighted-average fair value of options granted	$	3.93	$	2.51	$	2.33

Summary of changes in stock options outstanding under equity incentive plans

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
	(In thousands)							(In thousands)
Options outstanding as of January 1, 2011		25,877		$	12.16		3.7	$	31,128
Acquired options		290		$	1.39
Granted		3,053		$	9.65
Exercised		(1,332	)	$	4.86
Canceled and forfeited		(4,892	)	$	17.37
Options outstanding as of December 31, 2011		22,996		$	11.01		3.5	$	44,692
Options vested as of December 31, 2011		18,215		$	12.00		2.9	$	29,580
Options vested as of, and expected to vest after, December 31, 2011		22,884		$	11.02		3.5	$	44,472

Intrinsic value of and cash received from options exercised

	2011		2010		2009
	(In thousands)
Intrinsic value of options exercised	$	7,255	$	1,435	$	800
Cash received from options exercised	$	6,478	$	868	$	493

Stock-based compensation expense related to performance-based restricted stock grants

	2011		2010		2009
	(In thousands)
Stock-based compensation expense related to performance-based grants	$	2,174	$	2,541	$	914

Summary of the changes in restricted stock outstanding under Cadence's equity incentive plans

	Shares			Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Vesting Terms (Years)		Aggregate Intrinsic Value
	(In thousands)							(In thousands)
Unvested shares as of January 1, 2011		8,297		$	6.64		1.7	$	68,532
Granted		4,416		$	9.83
Vested		(4,335	)	$	6.64
Forfeited		(551	)	$	7.33
Unvested shares as of December 31, 2011		7,827		$	8.39		1.7	$	81,405
Unvested shares expected to vest after December 31, 2011		7,391		$	8.37		1.7	$	76,859

Total fair value of restricted stock awards that vested

	2011		2010		2009
	(In thousands)
Fair value of restricted stock realized upon vesting	$	43,756	$	28,866	$	19,838

Weighted-average grant date fair value of purchase rights granted under ESPP and weighted average assumptions used in model

	2011		2010		2009
Dividend yield		None		None		None
Expected volatility		38.4%		39.1%		51.3%
Risk-free interest rate		0.17%		0.19%		0.21%
Expected term (in years)		0.5		0.5		0.3
Weighted-average fair value of options granted	$	2.48	$	1.72	$	1.96

Shares of common stock issued under Employee Stock Purchase Plan

	2011		2010		2009
	(In thousands, except per share amounts)
Cadence shares purchased under the ESPP		2,029		2,568		8,661
Cash received for the purchase of shares under the ESPP	$	13,236	$	12,765	$	27,517
Weighted-average purchase price per share	$	6.52	$	4.97	$	3.18

Summary of common stock reserved for future issuance

	Shares
	(In thousands)
Employee equity incentive plans*		46,776
2015 Warrants (Note 3)		46,382
2011 and 2013 Notes Warrants (Note 3)		13,922
Employee stock purchase plans		5,299
Directors stock option plans*		2,307
2023 Notes conversion (Note 3)		11
Total		114,697

* 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.