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Goodwill and Acquired Intangibles
12 Months Ended
Jan. 01, 2022
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 2021 and 2020 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of December 28, 2019$661,856 
Goodwill resulting from acquisitions120,564 
Effect of foreign currency translation(333)
Balance as of January 2, 2021782,087 
Goodwill resulting from acquisitions154,362 
Effect of foreign currency translation(8,091)
Balance as of January 1, 2022$928,358 
Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2021 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 1, 2022 were as follows, excluding intangibles that were fully amortized as of January 2, 2021:
Gross Carrying
Amount
Accumulated
Amortization
Acquired
Intangibles, Net
 (In thousands)
Existing technology$405,481 $(254,599)$150,882 
Agreements and relationships205,057 (130,187)74,870 
Tradenames, trademarks and patents10,666 (3,153)7,513 
Total acquired intangibles$621,204 $(387,939)233,265 
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$561,451 $(350,861)$210,590 
Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization expense for fiscal 2021, 2020 and 2019, by consolidated income statement caption, was as follows:
202120202019
 (In thousands)
Cost of product and maintenance$47,576 $46,184 $40,951 
Amortization of acquired intangibles19,640 18,009 12,128 
Total amortization of acquired intangibles$67,216 $64,193 $53,079 
As of January 1, 2022, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
 (In thousands)
2022$50,673 
202335,142 
202433,383 
202522,741 
202617,661 
Thereafter73,665 
Total estimated amortization expense$233,265