Investments

12 Months Ended

Dec. 28, 2019

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS

INVESTMENTS

Cadence has a portfolio of equity investments that includes investments in both marketable and non-marketable securities. These investments primarily consist of cash investments in companies with technologies or services that are potentially strategically important to Cadence.

Marketable Equity Investments

Cadence’s investment in marketable equity securities consists of purchased shares of a publicly held company and is included in prepaid expense and other in Cadence’s consolidated balance sheets. During fiscal 2019 and 2018, with the adoption of ASU 2016-01, changes in the fair value of these investments were recorded to other income, net in Cadence’s consolidated income statements.

Non-Marketable Equity Investments

Cadence’s investments in non-marketable equity securities generally consist of stock, convertible debt or other instruments of privately held entities and are included in other assets on Cadence’s consolidated balance sheets. Cadence holds a 16% interest in a privately held company that is accounted for using the equity method of accounting. The carrying value of this investment was $136.3 million and $115.9 million as of December 28, 2019 and December 29, 2018, respectively. During fiscal 2019, Cadence recorded a loss to other income, net in Cadence’s consolidated income statements of $6.9 million, which represented Cadence’s proportionate share of net income from the investee, offset by amortization of basis differences.

Cadence also holds other non-marketable investments in privately held companies where Cadence does not have the ability to exercise significant influence and the fair value of the investments is not readily determinable. The carrying value of these investments was $1.9 million and $2.8 million as of December 28, 2019 and December 29, 2018, respectively. During fiscal 2019, Cadence recognized net gains of $2.1 million, of which a loss of $0.9 million related to equity securities still held as of December 28, 2019. During fiscal 2018, Cadence recognized net gains of $3.3 million, of which a loss of $0.1 million related to equity securities still held as of December 29, 2018.