Cash, Cash Equivalents and Investments
 6 Months Ended
Jun. 28, 2014
Cash, Cash Equivalents and Investments [Abstract]  
CASH, CASH EQUIVALENTS AND INVESTMENTS
CASH, CASH EQUIVALENTS AND INVESTMENTS
Cadence’s cash, cash equivalents and short-term investments at fair value as of June 28, 2014 and December 28, 2013 were as follows:
 
As of
 
June 28,
2014
 
December 28,
2013
 
(In thousands)
Cash and cash equivalents
$
557,416

 
$
536,260

Short-term investments
97,910

 
96,788

Cash, cash equivalents and short-term investments
$
655,326

 
$
633,048


Cash and Cash Equivalents
Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents. The amortized cost of Cadence’s cash equivalents approximates fair value. The following table summarizes Cadence’s cash and cash equivalents at fair value as of June 28, 2014 and December 28, 2013:
 
As of
 
June 28,
2014
 
December 28,
2013
 
(In thousands)
Cash and interest bearing deposits
$
199,800

 
$
188,088

Money market funds
357,616

 
345,872

Bank certificates of deposit
—

 
2,300

Total cash and cash equivalents
$
557,416

 
$
536,260


Short-Term Investments
The following tables summarize Cadence’s short-term investments as of June 28, 2014 and December 28, 2013:
 
As of June 28, 2014
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(In thousands)
Corporate debt securities
$
36,615

 
$
23

 
$
(13
)
 
$
36,625

Bank certificates of deposit
24,249

 
10

 
—

 
24,259

United States Treasury securities
19,273

 
37

 
—

 
19,310

United States government agency securities
11,352

 
10

 
(1
)
 
11,361

Commercial paper
1,994

 
1

 
—

 
1,995

Marketable debt securities
93,483

 
81

 
(14
)
 
93,550

Marketable equity securities
3,485

 
875

 
—

 
4,360

Total short-term investments
$
96,968

 
$
956

 
$
(14
)
 
$
97,910

 
As of December 28, 2013
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(In thousands)
Corporate debt securities
$
37,422

 
$
30

 
$
(11
)
 
$
37,441

Bank certificates of deposit
20,300

 
9

 
(1
)
 
20,308

United States Treasury securities
24,219

 
28

 
(1
)
 
24,246

United States government agency securities
10,212

 
11

 
—

 
10,223

Commercial paper
2,492

 
1

 
—

 
2,493

Marketable debt securities
94,645

 
79

 
(13
)
 
94,711

Marketable equity securities
1,817

 
260

 
—

 
2,077

Total short-term investments
$
96,462

 
$
339

 
$
(13
)
 
$
96,788


As of June 28, 2014, no securities held by Cadence had been in an unrealized loss position for greater than two months.
The amortized cost and estimated fair value of marketable debt securities included in short-term investments as of June 28, 2014, by contractual maturity, are shown in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties.
 
Amortized
Cost
 
Fair
Value
 
(In thousands)
Due in less than one year
$
45,019

 
$
45,057

Due in one to three years
48,464

 
48,493

Total marketable debt securities included in short-term investments
$
93,483

 
$
93,550


Realized gains and losses from the sale of marketable debt and equity securities are recorded in other income, net in the condensed consolidated income statements.
Non-Marketable Investments
Cadence’s non-marketable investments generally consist of voting preferred stock or convertible debt of privately held companies and are included in other assets on Cadence’s condensed consolidated balance sheets. If Cadence determines that it has the ability to exercise significant influence over the issuer, which may include considering whether the investments are in-substance common stock, the investment is accounted for using the equity method.
Cadence records in the condensed consolidated income statements as other income, net, realized gains and losses on non-marketable investments, write downs related to cost method investments due to other-than-temporary declines in value, and the proportional share of issuers’ gains or losses related to equity method investments.
The equity method income or loss recorded by Cadence is based on its percentage ownership in the issuer.
Cadence’s non-marketable investments as of June 28, 2014 and December 28, 2013 were as follows:
 
As of
 
June 28,
2014
 
December 28,
2013
 
(In thousands)
Cost method
$
3,038

 
$
3,038

Equity method
5,570

 
3,639

Total non-marketable investments
$
8,608

 
$
6,677