Goodwill and Acquired Intangibles

9 Months Ended

Sep. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill during the nine months ended September 28, 2019 were as follows:



	Gross Carrying Amount
	(In thousands)
Balance as of December 29, 2018	$	662,272
Effect of foreign currency translation	(594		)
Balance as of September 28, 2019	$	661,678

Acquired Intangibles, Net

Acquired intangibles as of September 28, 2019 were as follows, excluding intangibles that were fully amortized as of December 29, 2018:



	Gross Carrying Amount		Accumulated Amortization			Acquired Intangibles, Net
	(In thousands)
Existing technology	$	363,142	$	(236,297	)	$	126,845
Agreements and relationships	146,414		(109,729		)	36,685
Tradenames, trademarks and patents	7,600		(5,593		)	2,007
Total acquired intangibles with definite lives	517,156		(351,619		)	165,537
In-process technology	19,500		—			19,500
Total acquired intangibles	$	536,656	$	(351,619	)	$	185,037

In-process technology as of September 28, 2019 consisted of acquired projects that, if completed, will contribute to Cadence’s design IP offerings. As of September 28, 2019, these projects were expected to be completed in approximately six months. During the nine months ended September 28, 2019, Cadence completed certain projects previously included in in-process technology and transferred $52.0 million to existing technology.

Acquired intangibles as of December 29, 2018 were as follows, excluding intangibles that were fully amortized as of December 30, 2017:



	Gross Carrying Amount		Accumulated Amortization			Acquired Intangibles, Net
	(In thousands)
Existing technology	$	330,500	$	(225,383	)	$	105,117
Agreements and relationships	146,426		(100,211		)	46,215
Tradenames, trademarks and patents	10,718		(8,093		)	2,625
Total acquired intangibles with definite lives	487,644		(333,687		)	153,957
In-process technology	71,500		—			71,500
Total acquired intangibles	$	559,144	$	(333,687	)	$	225,457

Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization of acquired intangibles for the three and nine months ended September 28, 2019 and September 29, 2018 was as follows:



	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
	(In thousands)
Cost of product and maintenance	$	9,925	$	9,505	$	31,078	$	29,773
Amortization of acquired intangibles	2,874		3,470		9,341		10,618
Total amortization of acquired intangibles	$	12,799	$	12,975	$	40,419	$	40,391

Estimated amortization expense for acquired intangible assets with definite lives for the following five fiscal years and thereafter is as follows:



	(In thousands)
2019 – remaining period	$	12,660
2020	49,420
2021	44,758
2022	26,453
2023	13,967
Thereafter	18,279
Total estimated amortization expense	$	165,537