Other Income (Expense), Net

6 Months Ended

Jul. 02, 2011

Other Income (Expense), Net [Abstract]

NOTE 16. OTHER INCOME (EXPENSE), NET

Cadence’s Other income (expense), net, for the three and six months ended July 2, 2011 and July 3, 2010 was as follows:


	Three Months Ended						Six Months Ended
	July 2,			July 3,			July 2,			July 3,
	2011			2010			2011			2010
	(In thousands)
Interest income	$	324		$	302		$	697		$	550
Gains on sale of marketable securities		7,979			----			8,044			----
Gains on sale of non-marketable securities		108			242			2,729			4,756
Gains on trading securities in the NQDC trust		1,177			1,102			2,912			2,179
Gains (losses) on foreign exchange		(1,246	)		1,998			(1,725	)		2,190
Equity losses from investments		(35	)		(46	)		(65	)		(73	)
Write-down of investments		----			(1,500	)		----			(1,500	)
Loss on early extinguishment of debt (Note 2)		----			(5,321	)		----			(5,321	)
Other income		87			123			271			93

Total Other income (expense), net	$	8,394		$	(3,100	)	$	12,863		$	2,874

During the three and six months ended July 2, 2011, Cadence recorded gains of $8.0 million on the sale of available-for-sale securities. During the six months ended July 2, 2011, Cadence recorded a gain of $2.7 million on the sale of an equity method investment. During the six months ended July 3, 2010, Cadence recorded gains totaling $4.8 million on the liquidation of five cost method investments.

It is Cadence’s policy to review the fair value of its investment securities on a regular basis to determine whether its investments in these companies are other-than-temporarily impaired. This evaluation includes, but is not limited to, reviewing each company’s cash position, financing needs, earnings or revenue outlook, operational performance, management or ownership changes and competition. If Cadence believes the carrying value of an investment is in excess of its fair value, and this difference is other-than-temporary, it is Cadence’s policy to write down the investment to reduce its carrying value to fair value. Cadence determined that, as of July 2, 2011, none of its investment securities were other-than-temporarily impaired.

During the three and six months ended July 3, 2010, Cadence determined that certain of its non-marketable securities were other-than-temporarily impaired and Cadence wrote down these investments by $1.5 million.