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Revenue (Tables) | 6 Months Ended
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Jul. 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 and six months ended July 2, 2022 and July 3, 2021:
| Three Months Ended |  | Six Months Ended
| July 2, 2022 |  | July 3, 2021 |  | July 2, 2022 |  | July 3, 2021
Custom Integrated Circuit (“IC”) Design and Simulation | 23 | % |  | 23 | % |  | 22 | % |  | 23 | %
Digital IC Design and Signoff | 27 | % |  | 28 | % |  | 27 | % |  | 28 | %
Functional Verification, including Emulation and Prototyping Hardware* | 24 | % |  | 25 | % |  | 26 | % |  | 26 | %
Intellectual Property (“IP”) | 14 | % |  | 13 | % |  | 14 | % |  | 13 | %
System Design and Analysis | 12 | % |  | 11 | % |  | 11 | % |  | 10 | %
Total | 100 | % |  | 100 | % |  | 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 and six months ended July 2, 2022 and July 3, 2021:
| Three Months Ended |  | Six Months Ended
| July 2, 2022 |  | July 3, 2021 |  | July 2, 2022 |  | July 3, 2021
Revenue recognized over time | 84 | % |  | 84 | % |  | 82 | % |  | 83 | %
Revenue from arrangements with non-cancelable commitments | 2 | % |  | 3 | % |  | 2 | % |  | 3 | %
Recurring revenue | 86 | % |  | 87 | % |  | 84 | % |  | 86 | %
Up-front revenue | 14 | % |  | 13 | % |  | 16 | % |  | 14 | %
Total | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Contract balances | Cadence’s contract balances as of July 2, 2022 and January 1, 2022 were as follows:
| As of
| July 2, 2022 |  | January 1, 2022
| (In thousands)
Contract assets | $ | 23,273 |  |  | $ | 6,811 |
Deferred revenue | 719,869 |  |  | 655,090 |

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- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045 + Details
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