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Goodwill and Acquired Intangibles (Tables)
6 Months Ended
Jul. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in the carrying amount of goodwill
The changes in the carrying amount of goodwill during the six months ended July 2, 2022 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of January 1, 2022$928,358 
Goodwill resulting from acquisitions9,984 
Effect of foreign currency translation(13,882)
Balance as of July 2, 2022$924,460 
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)
Acquired intangibles as of July 2, 2022 were as follows, excluding intangibles that were fully amortized as of January 1, 2022:
Gross Carrying
Amount
Accumulated
Amortization
Acquired
Intangibles, Net
 (In thousands)
Existing technology$397,401 $(259,372)$138,029 
Agreements and relationships193,674 (129,517)64,157 
Tradenames, trademarks and patents9,048 (2,253)6,795 
Total acquired intangibles with definite lives600,123 (391,142)208,981 
In-process technology6,800 — 6,800 
Total acquired intangibles$606,923 $(391,142)$215,781 
In-process technology as of July 2, 2022 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of July 2, 2022, these projects were expected to be completed during the second quarter of fiscal 2023. During the three and six months ended July 2, 2022, there were no transfers from in-process technology to existing technology.
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 
Amortization of acquired intangibles Amortization expense for the three and six months ended July 2, 2022 and July 3, 2021 by condensed consolidated income statement caption was as follows:
 Three Months Ended Six Months Ended
 July 2,
2022
July 3,
2021
July 2,
2022
July 3,
2021
 (In thousands)
Cost of product and maintenance$10,068 $12,232 $22,039 $24,000 
Amortization of acquired intangibles4,633 5,030 9,597 9,661 
Total amortization of acquired intangibles$14,701 $17,262 $31,636 $33,661 
Estimated amortization expense
As of July 2, 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 - remaining period$20,763 
202337,432 
202435,672 
202523,744 
202618,379 
202716,862 
Thereafter56,129 
Total estimated amortization expense$208,981