Goodwill and Acquired Intangibles (Tables)

12 Months Ended

Dec. 29, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill during fiscal 2012 and 2011 were as follows:

	Gross Carrying Amount
	(In thousands)
Balance as of January 1, 2011	$	158,893
Goodwill resulting from acquisitions	32,250
Additions due to contingent consideration*	1,347
Effect of foreign currency translation	(365		)
Balance as of December 31, 2011	$	192,125
Goodwill resulting from acquisitions	39,680
Additions due to contingent consideration*	1,041
Effect of foreign currency translation	420
Balance as of December 29, 2012	$	233,266

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* Cadence accounts for business combinations with acquisition dates on or before January 3, 2009 under the purchase method in accordance with accounting standards that were authoritative at that time, whereby contingent consideration is added to goodwill as it is earned.

Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year

Acquired intangibles with definite lives as of December 29, 2012 were as follows, excluding intangibles that were fully amortized as of December 31, 2011:

	Gross Carrying Amount		Accumulated Amortization			Acquired Intangibles, Net
	(In thousands)
Existing technology	$	112,940	$	(30,171	)	$	82,769
Agreements and relationships	133,764		(37,769		)	95,995
Distribution rights	30,100		(28,595		)	1,505
Tradenames, trademarks and patents	12,485		(7,816		)	4,669
Total acquired intangibles	$	289,289	$	(104,351	)	$	184,938

Acquired intangibles with definite lives as of December 31, 2011 were as follows, excluding intangibles that were fully amortized as of January 1, 2011:

	Gross Carrying Amount		Accumulated Amortization			Acquired Intangibles, Net
	(In thousands)
Existing technology	$	90,433	$	(17,119	)	$	73,314
Agreements and relationships	118,060		(27,123		)	90,937
Distribution rights	30,100		(25,585		)	4,515
Tradenames, trademarks and patents	26,183		(21,715		)	4,468
Total acquired intangibles	$	264,776	$	(91,542	)	$	173,234

Amortization of acquired intangibles

Amortization expense for fiscal 2012, 2011 and 2010, by consolidated income statement caption, was as follows:

	2012		2011		2010
	(In thousands)
Cost of product	$	13,003	$	10,480	$	5,603
Cost of maintenance	538		—		1,045
Amortization of acquired intangibles	15,077		16,536		14,160
Total amortization of acquired intangibles	$	28,618	$	27,016	$	20,808

Estimated amortization expense

Estimated amortization expense for the following five fiscal years and thereafter is as follows:

	(In thousands)
2013	$	27,914
2014	25,178
2015	24,831
2016	24,307
2017	23,257
Thereafter	59,451
Total estimated amortization expense	$	184,938