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Goodwill and Acquired Intangibles
12 Months Ended
Jan. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND ACQUIRED INTANGIBLES GOODWILL AND ACQUIRED INTANGIBLES
Goodwill
The changes in the carrying amount of goodwill during fiscal 2020 and 2019 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of December 29, 2018$662,272 
Effect of foreign currency translation(416)
Balance as of December 28, 2019661,856 
Goodwill resulting from acquisitions120,564 
Effect of foreign currency translation(333)
Balance as of January 2, 2021$782,087 
Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2020 and determined that the fair value of Cadence’s single reporting unit exceeded the carrying amount of its net assets and that no impairment existed.
Acquired Intangibles, Net
Acquired intangibles as of January 2, 2021 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$370,838 $(230,654)$140,184 
Agreements and relationships180,023 (113,629)66,394 
Tradenames, trademarks and patents10,590 (6,578)4,012 
Total acquired intangibles with definite lives561,451 (350,861)210,590 
During fiscal 2020, Cadence completed certain 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 relationships146,395 (112,565)33,830 
Tradenames, trademarks and patents7,600 (5,795)1,805 
Total acquired intangibles with definite lives517,137 (364,262)152,875 
In-process technology19,500 — 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 expense for fiscal 2020, 2019 and 2018, by consolidated income statement caption, was as follows:
202020192018
 (In thousands)
Cost of product and maintenance$46,184 $40,951 $39,247 
Amortization of acquired intangibles18,009 12,128 14,086 
Total amortization of acquired intangibles$64,193 $53,079 $53,333 
As of January 2, 2021, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
 (In thousands)
2021$61,706 
202243,401 
202327,870 
202426,408 
202515,767 
Thereafter35,438 
Total estimated amortization expense$210,590