Accounts Receivable and Allowances for Doubtful Accounts

12 Months Ended

Dec. 31, 2011

Accounts Receivable and Allowances for Doubtful Accounts [Abstract]

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

NOTE 8. ACCOUNTS RECEIVABLE AND ALLOWANCES FOR DOUBTFUL ACCOUNTS

Cadence’s accounts receivable and installment contact receivables balances as of December 31, 2011 and January 1, 2011 were as follows:

	As of
	December 31, 2011		January 1, 2011
	(In thousands)
Accounts receivable	$	99,686	$	112,494
Installment contract receivables, short-term		37,086		87,003
Installment contract receivables, long-term		11,371		23,380
Total receivables		148,143		222,877
Less allowance for doubtful accounts		----		(7,604	)
Total accounts receivable, net and installment contract receivables	$	148,143	$	215,273

Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industry. As of December 31, 2011, no single customer accounted for more than 10% of Cadence’s total receivables, net. As of January 1, 2011, one customer accounted for 19% of Cadence’s total receivables, net. As of December 31, 2011, approximately 45% of Cadence’s total receivables, net, were attributable to the ten customers with the largest balances of total receivables, net. As of January 1, 2011, approximately 50% of Cadence’s total receivables, net, were attributable to the ten customers with the largest balances of total receivables, net.

The following table presents the change in Cadence’s allowance for doubtful accounts for fiscal 2011 and fiscal 2010:

	Balance at Beginning of Period			(Charged to) Credited to Costs and Expenses		(Charged to) Credited to other Accounts(1)			Deductions (2)			Balance at End of Period
Year Ended December 31, 2011	$	(7,604	)	$	6,596	$	----		$	1,008		$	----
Year Ended January 1, 2011	$	(23,744	)	$	17,098	$	(428	)	$	(530	)	$	(7,604	)

⁽¹⁾  Bad debt allowance from acquisitions.

⁽²⁾  Uncollectible accounts written-off, net of recoveries.