Investments

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

Marketable Equity Investments

Cadence’s investments in marketable equity securities consist of purchased shares of publicly held companies and are included in prepaid expenses and other in Cadence’s consolidated balance sheets. Changes in the fair value of these investments are recorded to other income (expense), net in Cadence’s consolidated income statements. The carrying value of marketable equity investments was $80.6 million and $4.5 million as of December 31, 2023, and December 31, 2022, respectively.

Marketable Debt Securities

The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on the consolidated balance sheet as of December 31, 2023:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In thousands)
Available-for-sale securities
Mortgage-backed and asset-backed securities	$	49,653	$	375	$	(243)	$	49,785
Total available-for-sale securities	$	49,653	$	375	$	(243)	$	49,785

Gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on Cadence's consolidated balance sheets.

As of December 31, 2023, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows:

	(In thousands)
Due within 1 year	$	—
Due after 1 year through 5 years	10,027
Due after 5 years through 10 years	16,180
Due after 10 years	23,578
Total	$	49,785

As of December 31, 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 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 $111.1 million and $117.7 million as of December 31, 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 consolidated income statements. During fiscal 2023, 2022 and 2021, Cadence recorded losses of $2.7 million, $3.6 million and $1.1 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 $27.2 million and $2.3 million as of December 31, 2023, and December 31, 2022, respectively. There were no material upward or downward adjustments to non-marketable investments held or sold by Cadence during the periods presented.