Goodwill and Acquired Intangibles

6 Months Ended

Jun. 27, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND ACQUIRED INTANGIBLES

GOODWILL AND ACQUIRED INTANGIBLES

Goodwill

The changes in the carrying amount of goodwill during the six months ended June 27, 2020 were as follows:

	Gross Carrying Amount
	(In thousands)
Balance as of December 28, 2019	$	661,856
Goodwill resulting from acquisitions	119,357
Effect of foreign currency translation	(2,356)
Balance as of June 27, 2020	$	778,857

Acquired Intangibles, Net

Acquired intangibles as of June 27, 2020 were as follows, excluding intangibles that were fully amortized as of December 28, 2019:

	Gross Carrying Amount		Accumulated Amortization		Acquired Intangibles, Net
	(In thousands)
Existing technology	$	369,738	$	(207,374)	$	162,364
Agreements and relationships	179,969		(104,159)		75,810
Tradenames, trademarks and patents	10,590		(6,221)		4,369
Total acquired intangibles	$	560,297	$	(317,754)	$	242,543

During the six months ended June 27, 2020, Cadence completed the projects previously included in in-process technology and transferred $19.5 million to existing technology.

Acquired intangibles as of December 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	$	(245,902)	$	117,240
Agreements and relationships	146,395		(112,565)		33,830
Tradenames, trademarks and patents	7,600		(5,795)		1,805
Total acquired intangibles with definite lives	517,137		(364,262)		152,875
In-process technology	19,500		—		19,500
Total acquired intangibles	$	536,637	$	(364,262)	$	172,375

Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization of acquired intangibles for the three and six months ended June 27, 2020 and June 29, 2019 was as follows:

	Three Months Ended				Six Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
	(In thousands)
Cost of product and maintenance	$	11,484	$	11,299	$	22,344	$	21,153
Amortization of acquired intangibles	4,590		3,159		8,796		6,467
Total amortization of acquired intangibles	$	16,074	$	14,458	$	31,140	$	27,620

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

	(In thousands)
2020 - remaining period	$	32,963
2021	61,487
2022	43,181
2023	27,651
2024	26,188
Thereafter	51,073
Total estimated amortization expense	$	242,543