SEC Comment Letter 0000000000-23-011586 to CADENCE DESIGN SYSTEMS INC (CDNS)
CADENCE DESIGN SYSTEMS INC
Date: Oct. 23, 2023 · CIK: 0000813672 · Accession: 0000000000-23-011586
AI Filing Summary & Sentiment
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File numbers found in text: 000-15867
Letter
United States securities and exchange commission logo October 23, 2023 John Wall Chief Financial Officer Cadence Design Systems, Inc. 2655 Seely Avenue, Building 5 95134San Jose, California Re:Cadence Design Systems, Inc. Form 10-K for the Fiscal Year Ended December 31, 2022 Form 8-K furnished on July 24, 2023 File No. 000-15867 Dear John Wall: We have reviewed your filings and have the following comments. Please respond to this letter within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe a comment applies to your facts and circumstances, please tell us why in your response. After reviewing your response to this letter, we may have additional comments. Form 10-K for the Fiscal Year Ended December 31, 2022 Consolidated Income Statements, page 50 1.Please provide us with a breakdown of the various revenue streams included in the product and maintenance revenue line item and tell us your consideration to separately disclose revenue from product and services, as applicable. Refer to Rule 5-03(b)(1) and (2) of Regulation S-X. Note 3. Revenue Remaining Performance Obligations, page 62 2.You state that you expect to recognize approximately 55% of the $5.4 billion contracted but unsatisfied performance obligations, excluding non-cancelable commitments, as revenue over the next 12 months. Please revise future filings to disclose when the remaining 45% will be recognized on a quantitative basis using time bands that would be most appropriate for the duration of the remaining performance obligations or by providing qualitative information. Refer to ASC 606-10-50-13.
FirstName LastNameJohn Wall Comapany NameCadence Design Systems, Inc. October 23, 2023 Page 2 FirstName LastName John Wall Cadence Design Systems, Inc. October 23, 2023 Page 2 Form 8-K furnished on July 24, 2023 Exhibit 99.2, page 2 3.We note that you present several non-GAAP measures in your earnings release, such as non-GAAP operating income and non-GAAP operating income adjusted for stock-based compensation, for which no reconciliation has been provided. Please revise future filings to include a reconciliation to the most directly comparable GAAP measure for all non- GAAP measures provided. Refer to Rule 100(a)(2) of Regulation G and Item 10(e)(1)(i)(B) of Regulation S-K. We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff. Please contact Megan Akst at 202-551-3407 or Kathleen Collins at 202-551-3499 if you have questions regarding comments on the financial statements and related matters. Sincerely, Division of Corporation Finance Office of Technology cc: Stephanie Wells
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United States securities and exchange commission logo
October 23, 2023
John Wall
Chief Financial Officer
Cadence Design Systems, Inc.
2655 Seely Avenue, Building 5
95134San Jose, California
Re:Cadence Design Systems, Inc.
Form 10-K for the Fiscal Year Ended December 31, 2022
Form 8-K furnished on July 24, 2023
File No. 000-15867
Dear John Wall:
We have reviewed your filings and have the following comments.
Please respond to this letter within ten business days by providing the requested
information or advise us as soon as possible when you will respond. If you do not believe a
comment applies to your facts and circumstances, please tell us why in your response.
After reviewing your response to this letter, we may have additional comments.
Form 10-K for the Fiscal Year Ended December 31, 2022
Consolidated Income Statements, page 50
1.Please provide us with a breakdown of the various revenue streams included in the
product and maintenance revenue line item and tell us your consideration to separately
disclose revenue from product and services, as applicable. Refer to Rule 5-03(b)(1)
and (2) of Regulation S-X.
Note 3. Revenue
Remaining Performance Obligations, page 62
2.You state that you expect to recognize approximately 55% of the $5.4 billion contracted
but unsatisfied performance obligations, excluding non-cancelable commitments, as
revenue over the next 12 months. Please revise future filings to disclose when the
remaining 45% will be recognized on a quantitative basis using time bands that would be
most appropriate for the duration of the remaining performance obligations or by
providing qualitative information. Refer to ASC 606-10-50-13.
FirstName LastNameJohn Wall
Comapany NameCadence Design Systems, Inc.
October 23, 2023 Page 2
FirstName LastName
John Wall
Cadence Design Systems, Inc.
October 23, 2023
Page 2
Form 8-K furnished on July 24, 2023
Exhibit 99.2, page 2
3.We note that you present several non-GAAP measures in your earnings release, such as
non-GAAP operating income and non-GAAP operating income adjusted for stock-based
compensation, for which no reconciliation has been provided. Please revise future filings
to include a reconciliation to the most directly comparable GAAP measure for all non-
GAAP measures provided. Refer to Rule 100(a)(2) of Regulation G and Item
10(e)(1)(i)(B) of Regulation S-K.
We remind you that the company and its management are responsible for the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action or absence of
action by the staff.
Please contact Megan Akst at 202-551-3407 or Kathleen Collins at 202-551-3499 if you
have questions regarding comments on the financial statements and related matters.
Sincerely,
Division of Corporation Finance
Office of Technology
cc: Stephanie Wells