CASH, CASH EQUIVALENTS AND INVESTMENTS

Cadence's cash, cash equivalents and short-term investments at fair value as of December 29, 2012 and December 31, 2011 were as follows:



	As of
	December 29, 2012		December 31, 2011
	(In thousands)
Cash and cash equivalents	$	726,357	$	601,602
Short-term investments	100,704		3,037
Cash, cash equivalents and short-term investments	$	827,061	$	604,639

Cash and Cash Equivalents

The following table summarizes Cadence's cash and cash equivalents at fair value as of December 29, 2012 and December 31, 2011:



	As of
	December 29, 2012		December 31, 2011
	(In thousands)
Cash and interest bearing deposits	$	160,023	$	117,500
Money market funds	566,334		484,102
Total cash and cash equivalents	$	726,357	$	601,602

The amortized cost of Cadence's cash equivalents approximates fair value.

Short-Term Investments

The following tables summarize Cadence's short-term investments as of December 29, 2012 and December 31, 2011:



	As of December 29, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	31,313	$	57	$	(11	)	$	31,359
Bank certificates of deposit	27,805		21		—			27,826
United States Treasury securities	23,213		26		—			23,239
United States government agency securities	10,245		13		—			10,258
Commercial paper	5,777		6		—			5,783
Marketable debt securities	98,353		123		(11		)	98,465
Marketable equity securities	1,817		422		—			2,239
Total short-term investments	$	100,170	$	545	$	(11	)	$	100,704



	As of December 31, 2011
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Marketable equity securities	$	1,830	$	1,207	$	—	$	3,037
Total short-term investments	$	1,830	$	1,207	$	—	$	3,037

Cadence purchased its investments in marketable debt securities during fiscal 2012. As of December 29, 2012, any security Cadence held with an unrealized loss had been held for less than one year.

The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of December 29, 2012, by contractual maturity, are shown in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.



	Amortized Cost		Fair Value
	(In thousands)
Due in less than one year	$	57,447	$	57,491
Due in one to three years	40,906		40,974
Total marketable debt securities included in short-term investments	$	98,353	$	98,465

Realized gains from the sale of marketable debt and equity securities for fiscal 2012, 2011 and 2010 were as follows:



	2012		2011		2010
	(In thousands)
Gains on sale of marketable debt and equity securities	$	143	$	8,052	$	—

Amortization of premium or discount related to Cadence's marketable debt securities for fiscal 2012, 2011 and 2010 was as follows:



	2012			2011		2010
	(In thousands)
Amortization of premium or discount	$	(498	)	$	—	$	—

Non-Marketable Investments

Cadence's non-marketable investments generally consist of voting preferred stock or convertible debt of privately-held companies and are included in other assets on Cadence's consolidated balance sheets. If Cadence determines that it has the ability to exercise significant influence over the issuer, which may include considering whether the investments are in-substance common stock, the investment is accounted for using the equity method.

Cadence's non-marketable investments as of December 29, 2012 and December 31, 2011 were as follows:



	As of
	December 29, 2012		December 31, 2011
	(In thousands)
Cost method	$	3,038	$	6,157
Equity method	4,249		4,303
Total non-marketable investments	$	7,287	$	10,460

Net realized gains on the sale of non-marketable investments for fiscal 2012, 2011 and 2010 were as follows:



	2012		2011		2010
	(In thousands)
Gains on sale of non-marketable investments	$	2,895	$	8,281	$	4,916

Cost Method Investments

Cadence recorded write-downs related to cost method investments due to other-than-temporary declines in value during fiscal 2012, 2011 and 2010 as follows:



	2012		2011		2010
	(In thousands)
Write-down of cost method investments	$	1,103	$	—	$	1,500

These write-downs are included in other income, net, in the consolidated income statements.

Equity Method Investments

The equity method income or loss recorded by Cadence is based on Cadence's percentage ownership of each issuer's preferred stock or convertible debt available to absorb losses or with contractual rights to income. Cadence's level of participation in future financings of its equity method issuers may impact its proportional share of future income or losses. Cadence records its proportional share of the issuers' gains or losses in other income, net.

Cadence recorded losses related to equity method investments during fiscal 2012, 2011 and 2010 as follows:



	2012		2011		2010
	(In thousands)
Equity losses from non-marketable investments	$	65	$	136	$	133