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CADENCE DESIGN SYSTEMS INC 8-K Report, Exit or Disposal Costs (Jan 15, 2010)

Reports
Financial Events
Filing Date
Filed January 15, 2010
Period End
January 14, 2010
Security
CDNS
In the record · 2016–202610-K1210-Q328-K98

CDNS filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 98 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Leadership change8-K · May ’19May ’19
  3. Leadership change8-K · Jul ’21Jul ’21
  4. Material agreement8-K · Sep ’25Sep ’25

01—Abstract

Summary

Summary of the 8-K filed January 15, 2010. Cited figures are marked; the original filing is the authoritative source.

Cadence Design Systems, Inc. (CDNS) announced on January 14, 2010, the commencement of a significant restructuring plan.

This initiative is designed to achieve substantial annual operating expense savings, estimated at approximately $19 milliona. The cost reductions are primarily driven by workforce reductions, involving the elimination of around 120 full-time positions, and other expense control measures. Investors should note that this restructuring will result in a pre-tax restructuring charge between $11 million and $15 million.

A significant portion of this charge, estimated at $10 million to $12 millionb, was recognized in the fourth quarter of 2009. The company anticipates that the full realization of these workforce reductions will extend through fiscal year 2010 due to varying international regulations. Importantly, Cadence also cautioned that a substantial portion of the expected operating expense savings may be offset by increased investments in product technology development and enhancement.

02—Key points

Key Highlights

  1. Commencement of a company-wide restructuring plan as of January 14, 2010.
  2. Expected annual operating expense savings of approximately $19 million upon completion.
  3. Involves the elimination of approximately 120 full-time positions.
  4. Anticipated pre-tax restructuring charge of $11 million to $15 million.
  5. A majority of the restructuring charge ($10 million to $12 million) recognized in Q4 2009.
  6. Restructuring completion expected by the end of fiscal year 2010, subject to jurisdictional regulations.
  7. Potential for expected savings to be offset by increased investments in product technology.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of Cadence's restructuring plan?

    The primary purpose of the restructuring plan is to achieve significant annual operating expense savings, estimated at approximately $19 million, through workforce and other expense reductions.

  2. What is the financial impact of this restructuring on Cadence?

    Cadence expects to record a pre-tax restructuring charge of $11 million to $15 million. Approximately $10 million to $12 million of this charge was recognized in the fourth quarter of 2009. These charges are primarily for employee-related costs and facility reductions.

  3. How many employees will be affected by this restructuring?

    The restructuring plan involves the elimination of approximately 120 full-time positions.

  4. When is the restructuring expected to be completed?

    The workforce reductions will be realized over time and are expected to be completed by the end of fiscal year 2010, due to varying regulations in different jurisdictions.

  5. Will the expected cost savings fully materialize?

    Cadence cautions that substantially all of the estimated annual operating expense savings may be offset by increased costs related to developing and enhancing its product technologies.

04—Continue

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