Investments

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Marketable Equity Investments

Cadence’s investment in marketable equity securities consists of purchased shares of a publicly held company and is included in prepaid expenses and other in Cadence’s condensed consolidated balance sheets. Changes in the fair value of these investments is recorded to other income (expense), net in Cadence’s condensed consolidated income statements.

Marketable Debt Securities

The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on the condensed consolidated balance sheet as of June 30, 2023:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In thousands)
Available-for-sale securities
Mortgage-backed and asset-backed securities	$	28,692	$	9	$	(433)	$	28,268

Total available-for-sale securities	$	28,692	$	9	$	(433)	$	28,268

As of June 30, 2023, the fair values of available-for-sale securities, by remaining contractual maturity, were as follows:


	(In thousands)
Due within 1 year	$	—
Due after 1 year through 5 years	8,607
Due after 5 years through 10 years	8,132
Due after 10 years	11,529
Total	$	28,268

As of June 30, 2023, Cadence does not intend to sell any of its available-for-sale securities in an unrealized loss position, and it is more likely than not that Cadence will hold the securities until maturity or a recovery of the cost basis.

Non-Marketable Equity Investments

Cadence’s investments in non-marketable equity securities generally consist of stock or other instruments of privately held entities and are included in other assets on Cadence’s condensed 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 $114.7 million and $117.7 million as of June 30, 2023 and December 31, 2022, respectively.

Cadence records its proportionate share of net income from the investee, offset by amortization of basis differences, to other income (expense), net in Cadence’s condensed consolidated income statements. For the three and six months ended June 30, 2023, Cadence recognized losses of $1.0 million and $1.1 million, respectively. For the three and six months ended July 2, 2022, Cadence recognized losses of $0.4 million and $1.2 million, respectively.

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 $2.2 million and $2.3 million as of June 30, 2023 and December 31, 2022, respectively. Gains and losses on these investments were not material to Cadence’s condensed consolidated financial statements for the periods presented.