| Income Tax Disclosure [Abstract] | Period [Axis] |
|---|
2016-01-03 - 2016-12-31 |
|---|
Income Tax Disclosure [Abstract] | |
Income before provision for income taxes | Cadence’s income before provision for income taxes included income from the United States and from foreign subsidiaries for fiscal 2016, 2015 and 2014, is as follows: | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | | (In thousands) | United States | $ | 84,694 |
| | $ | 47,867 |
| | $ | 12,680 |
| Foreign subsidiaries | 152,459 |
| | 219,729 |
| | 168,322 |
| Total income before provision for income taxes | $ | 237,153 |
| | $ | 267,596 |
| | $ | 181,002 |
|
|
Components of income taxes provision | Cadence’s provision for income taxes was comprised of the following items for fiscal 2016, 2015 and 2014: | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | | (In thousands) | Current: | | | | | | Federal | $ | 4,839 |
| | $ | (10,265 | ) | | $ | (13,754 | ) | State and local | 50 |
| | (713 | ) | | (1,159 | ) | Foreign | 34,047 |
| | 24,622 |
| | 19,100 |
| Total current | 38,936 |
| | 13,644 |
| | 4,187 |
| | | | | | | Deferred: | | | | | | Federal | (5,291 | ) | | (13,165 | ) | | 2,075 |
| State and local | 6,006 |
| | 1,751 |
| | 1,633 |
| Foreign | (5,584 | ) | | (1,734 | ) | | 8,770 |
| Total deferred | (4,869 | ) |
| (13,148 | ) | | 12,478 |
| | | | | | | Tax expense allocated to shareholders’ equity | — |
| | 14,683 |
| | 5,439 |
| | | | | | | Total provision for income taxes | $ | 34,067 |
| | $ | 15,179 |
| | $ | 22,104 |
|
|
Summary of income tax reconciliation | The provision for income taxes differs from the amount estimated by applying the United States statutory federal income tax rate of 35% to income before provision for income taxes for fiscal 2016, 2015 and 2014 as follows: | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | | (In thousands) | Provision computed at federal statutory income tax rate | $ | 83,003 |
| | $ | 93,659 |
| | $ | 63,350 |
| State and local income tax, net of federal tax effect | 5,534 |
| | 3,621 |
| | 1,168 |
| Foreign income tax rate differential | (36,098 | ) | | (56,873 | ) | | (39,012 | ) | Stock-based compensation | (13,132 | ) | | 2,687 |
| | 5,726 |
| Change in deferred tax asset valuation allowance | 1,243 |
| | (11,066 | ) | | 10,065 |
| Tax credits | (39,765 | ) | | (19,243 | ) | | (17,331 | ) | Repatriation of foreign earnings | 25,145 |
| | 50 |
| | (2,910 | ) | Non-deductible research and development expense | — |
| | 336 |
| | 2,195 |
| Tax effects of intra-entity transfer of assets | (7,661 | ) | | (7,928 | ) | | (5,397 | ) | Domestic production activity deduction | (2,826 | ) | | — |
| | (1,281 | ) | Withholding taxes | 9,870 |
| | 5,119 |
| | 4,064 |
| Tax settlements, foreign | 5,620 |
| | — |
| | — |
| Interest and penalties not included in tax settlements | 451 |
| | 331 |
| | (382 | ) | Increase in unrecognized tax benefits not included in tax settlements | 614 |
| | 3,530 |
| | 157 |
| Other | 2,069 |
| | 956 |
| | 1,692 |
| Provision for income taxes | $ | 34,067 |
| | $ | 15,179 |
| | $ | 22,104 |
| Effective tax rate | 14 | % | | 6 | % | | 12 | % |
|
Components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities consisted of the following as of December 31, 2016 and January 2, 2016: | | | | | | | | | | As of | | December 31,
2016 | | January 2,
2016 | | (In thousands) | Deferred tax assets: | | | | Tax credit carryforwards | $ | 180,999 |
| | $ | 189,672 |
| Reserves and accruals | 62,438 |
| | 54,774 |
| Intangible assets | 23,335 |
| | 29,256 |
| Capitalized research and development expense for income tax purposes | 19,093 |
| | 26,332 |
| Operating loss carryforwards | 23,175 |
| | 25,208 |
| Deferred income | 14,842 |
| | 16,407 |
| Capital loss carryforwards | 20,580 |
| | 20,552 |
| Stock-based compensation costs | 20,087 |
| | 17,612 |
| Depreciation and amortization | 12,202 |
| | 22,442 |
| Investments | 6,442 |
| | 7,113 |
| Prepaid expenses | 26,526 |
| | — |
| Total deferred tax assets | 409,719 |
| | 409,368 |
| Valuation allowance | (92,920 | ) | | (91,677 | ) | Net deferred tax assets | 316,799 |
| | 317,691 |
| | | | | Deferred tax liabilities: | | | | Intangible assets | (35,651 | ) | | (45,697 | ) | Undistributed foreign earnings | (24,529 | ) | | (25,156 | ) | Other | (119 | ) | | (1,390 | ) | Total deferred tax liabilities | (60,299 | ) | | (72,243 | ) | Total net deferred tax assets | $ | 256,500 |
| | $ | 245,448 |
|
|
Summary of operating loss carryforward | As of December 31, 2016, Cadence’s operating loss carryforwards were as follows: | | | | | | | | Amount | | Expiration Periods | | (In thousands) | | | Federal | $ | 2,045 |
| | from 2021 through 2029 | California | 172,903 |
| | from 2019 through 2035 | Other states (tax effected, net of federal benefit) | 2,009 |
| | from 2019 through 2035 | Foreign (tax effected) | 10,515 |
| | from 2025 through indefinite |
|
Summary of tax credit carryforwards | As of December 31, 2016, Cadence had tax credit carryforwards of: | | | | | | | | Amount | | Expiration Periods | | (In thousands) | | | Federal* | $ | 123,672 |
| | from 2019 through 2036 | California | 36,348 |
| | indefinite | Other states | 6,738 |
| | from 2017 through 2035 | Foreign | 14,241 |
| | from 2017 through 2036 |
_____________ *Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period. |
Earliest tax years open to examination by jurisdiction | As of December 31, 2016 Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include: | | | | Jurisdiction | | Earliest Tax Year Open to Examination | | | | United States - Federal | | 2013 | United States - California | | 2012 | Hungary | | 2011 | South Korea | | 2011 |
|
Unrecognized tax benefits roll forward | The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2016, 2015 and 2014 are as follows: | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | | (In thousands) | Unrecognized tax benefits at the beginning of the fiscal year | $ | 87,820 |
| | $ | 97,224 |
| | $ | 78,279 |
| Gross amount of the increases (decreases) in unrecognized tax benefits of tax positions taken during a prior year* | (155 | ) | | (7,331 | ) | | 8,301 |
| Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 11,342 |
| | 7,513 |
| | 12,381 |
| Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes | — |
| | (9,571 | ) | | — |
| Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | (149 | ) | | (119 | ) | | (86 | ) | Effect of foreign currency translation | (318 | ) | | 104 |
| | (1,651 | ) | Unrecognized tax benefits at the end of the fiscal year | $ | 98,540 |
| | $ | 87,820 |
| | $ | 97,224 |
| | | | | | | Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence’s effective tax rate | $ | 56,248 |
| | $ | 48,335 |
| | $ | 57,127 |
|
_________ * Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions |
Interest and penalties recognized in consolidated income statements and balance sheets | The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision (benefit) for income taxes for fiscal 2016, 2015 and 2014 were as follows: | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | | (In thousands) | Interest | $ | 1,166 |
| | $ | 110 |
| | $ | 255 |
| Penalties | 3 |
| | (127 | ) | | (748 | ) |
The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 31, 2016 and January 2, 2016 were as follows: | | | | | | | | | | As of | | December 31,
2016 | | January 2,
2016 | | (In thousands) | Interest | $ | 1,332 |
| | $ | 1,128 |
| Penalties | 265 |
| | 270 |
|
|