Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

Cadence Design Systems Inc., balance sheet: property, plant and equipment

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Equipment and internal-use software	781,683)	727,415)	676,672)	655,568)	593,829)
Buildings	131,882)	131,949)	126,557)	126,666)	126,795)
Land	56,641)	56,611)	55,842)	55,848)	55,820)
Leasehold, building and land improvements	211,854)	176,413)	137,778)	129,155)	106,456)
Furniture and fixtures	39,998)	34,330)	27,798)	27,064)	23,425)
In-process capital assets	17,937)	21,670)	13,830)	10,774)	4,706)
Property, plant and equipment, cost	1,239,995)	1,148,388)	1,038,477)	1,005,075)	911,031)
Accumulated depreciation and amortization	(836,782)	(776,937)	(732,566)	(693,950)	(635,176)
Property, plant and equipment, net	403,213)	371,451)	305,911)	311,125)	275,855)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

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Item	Description	The company
Property, plant and equipment, cost	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Cadence Design Systems Inc. property, plant and equipment, cost increased from 2021 to 2022 and from 2022 to 2023.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Cadence Design Systems Inc. property, plant and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

Cadence Design Systems Inc., asset age ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Average age ratio	70.71%	71.16%	74.55%	73.11%	74.27%
Estimated total useful life (years)	15	16	14	14	14
Estimated age, time elapsed since purchase (years)	11	11	10	10	10
Estimated remaining life (years)	4	5	4	4	3

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Cadence Design Systems Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Cadence Design Systems Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Cadence Design Systems Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Estimated remaining life		Cadence Design Systems Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Selected Financial Data (US$ in thousands)
Accumulated depreciation and amortization	836,782)	776,937)	732,566)	693,950)	635,176)
Property, plant and equipment, cost	1,239,995)	1,148,388)	1,038,477)	1,005,075)	911,031)
Land	56,641)	56,611)	55,842)	55,848)	55,820)
Asset Age Ratio
Average age¹	70.71%	71.16%	74.55%	73.11%	74.27%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, cost – Land)
= 100 × 836,782 ÷ (1,239,995 – 56,641) = 70.71%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Cadence Design Systems Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Selected Financial Data (US$ in thousands)
Property, plant and equipment, cost	1,239,995)	1,148,388)	1,038,477)	1,005,075)	911,031)
Land	56,641)	56,611)	55,842)	55,848)	55,820)
Depreciation and amortization expense for property, plant and equipment	78,400)	69,100)	71,200)	67,600)	63,300)
Asset Age Ratio (Years)
Estimated total useful life¹	15	16	14	14	14

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Estimated total useful life = (Property, plant and equipment, cost – Land) ÷ Depreciation and amortization expense for property, plant and equipment
= (1,239,995 – 56,641) ÷ 78,400 = 15

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Cadence Design Systems Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Selected Financial Data (US$ in thousands)
Accumulated depreciation and amortization	836,782)	776,937)	732,566)	693,950)	635,176)
Depreciation and amortization expense for property, plant and equipment	78,400)	69,100)	71,200)	67,600)	63,300)
Asset Age Ratio (Years)
Time elapsed since purchase¹	11	11	10	10	10

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense for property, plant and equipment
= 836,782 ÷ 78,400 = 11

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Cadence Design Systems Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Selected Financial Data (US$ in thousands)
Property, plant and equipment, net	403,213)	371,451)	305,911)	311,125)	275,855)
Land	56,641)	56,611)	55,842)	55,848)	55,820)
Depreciation and amortization expense for property, plant and equipment	78,400)	69,100)	71,200)	67,600)	63,300)
Asset Age Ratio (Years)
Estimated remaining life¹	4	5	4	4	3

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation and amortization expense for property, plant and equipment
= (403,213 – 56,641) ÷ 78,400 = 4

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Asset age ratio	Description	The company
Estimated remaining life		Cadence Design Systems Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Cadence Design Systems Inc. (NASDAQ:CDNS)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life