XML 43 R17.htm IDEA: XBRL DOCUMENT v3.25.1
FAIR VALUE
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy:
•Level 1 – Quoted prices for identical instruments in active markets;
•Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2025.
On a quarterly basis, Cadence measures at fair value certain financial assets and liabilities. The fair value of financial assets and liabilities was determined using the following levels of inputs as of March 31, 2025 and December 31, 2024:
 Fair Value Measurements as of March 31, 2025
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$1,963,812 $1,963,812 $— $— 
Marketable securities:
Marketable equity securities78,706 78,706 — — 
Mortgage-backed and asset-backed securities51,001 — 51,001 — 
Securities held in NQDC trust
93,023 93,023 — — 
Foreign currency exchange contracts12,289 — 12,289 — 
Total Assets$2,198,831 $2,135,541 $63,290 $— 
As of March 31, 2025, Cadence did not have any financial liabilities requiring a recurring fair value measurement.
 Fair Value Measurements as of December 31, 2024
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$1,700,084 $1,700,084 $— $— 
Marketable securities:
Marketable equity securities90,374 90,374 — — 
Mortgage-backed and asset-backed securities50,252 — 50,252 — 
Securities held in NQDC trust96,450 96,450 — — 
Total Assets$1,937,160 $1,886,908 $50,252 $— 
  TotalLevel 1Level 2Level 3
 (In thousands)
Liabilities
Foreign currency exchange contracts$7,533 $— $7,533 $— 
Total Liabilities$7,533 $— $7,533 $— 
Level 1 Measurements
Cadence’s cash equivalents held in money market funds, marketable equity securities and the trading securities held in Cadence’s NQDC trust are measured at fair value using Level 1 inputs.
Level 2 Measurements
The valuation techniques used to determine the fair value of Cadence’s investments in marketable debt securities, foreign currency forward exchange contracts and New Senior Notes are classified within Level 2 of the fair value hierarchy. For additional information relating to Cadence’s debt arrangements, see Note 4 in the notes to condensed consolidated financial statements.