Investments

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

INVESTMENTS

NOTE 10. INVESTMENTS

Cadence’s investments include cash equivalents, marketable securities and non-marketable securities. The following tables summarize Cadence’s cash and cash equivalents and short-term investments as of December 31, 2011:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Classified as cash and cash equivalents:
Cash and interest bearing deposits	$	117,500	$	----	$	----	$	117,500
Cash equivalents – money market funds		484,102		----		----		484,102
Total cash and cash equivalents	$	601,602	$	----	$	----	$	601,602
Classified as short-term investments:
Available-for-sale securities	$	1,830	$	1,207	$	----	$	3,037

The following tables summarize Cadence’s cash and cash equivalents and short-term investments as of January 1, 2011:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Classified as cash and cash equivalents:
Cash and interest bearing deposits	$	93,728	$	----	$	----	$	93,728
Cash equivalents – money market funds		463,681		----		----		463,681
Total cash and cash equivalents	$	557,409	$	----	$	----	$	557,409
Classified as short-term investments:
Available-for-sale securities	$	3,262	$	9,453	$	----	$	12,715

Marketable Securities

Net recognized gains (losses) from the sale of available-for-sale equity securities during fiscal 2011, fiscal 2010 and fiscal 2009 were as follows:

	2011			2010		2009
	(In thousands)
Gains on sale of available-for-sale securities	$	8,052		$	----	$	2,341
(Losses) on sale of available-for-sale securities		(43	)		----		----
Net gains on sale of available-for-sale securities	$	8,009		$	----	$	2,341

Non-Marketable Securities

Cadence’s non-marketable investments generally consist of voting preferred stock or convertible debt of privately-held companies. If Cadence determines that it has the ability to exercise significant influence over the issuer, which may include considering whether the securities Cadence holds are in-substance common stock, the investment is accounted for using the equity method.

Cadence’s non-marketable securities as of December 31, 2011 and January 1, 2011 were as follows:

	2011		2010
	(In thousands)
Cost method	$	6,157	$	5,560
Equity method		4,303		3,714
Total non-marketable securities in other assets	$	10,460	$	9,274

Net realized gains on the sale of non-marketable investments for fiscal 2011, fiscal 2010 and fiscal 2009 were as follows:

	2011		2010		2009
	(In thousands)
Gains on sale of non-marketable investments	$	8,281	$	4,916	$	----

Cost Method Investments

Cadence recorded write-downs related to cost method investments due to other-than-temporary declines in value during fiscal 2011, fiscal 2010 and fiscal 2009 as follows:

	2011		2010		2009
	(In thousands)
Write-down of cost method investments	$	----	$	1,500	$	5,207

These write-downs are included in other income (expense), net, in the Consolidated Statements of Operations.

Equity Method Investments

The equity method income or loss recorded by Cadence is based on Cadence’s percentage ownership of each issuer’s preferred stock or convertible debt available to absorb losses or with contractual rights to income. Cadence’s level of participation in future financings of its equity method issuers may impact its proportional share of future income or losses. Cadence records its proportional share of the issuers’ gains or losses in other income (expense), net.