Goodwill and Acquired Intangibles (Tables)

9 Months Ended

Oct. 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill during the nine months ended October 1, 2022 were as follows:

	Gross Carrying Amount
	(In thousands)
Balance as of January 1, 2022	$	928,358
Goodwill resulting from acquisitions	446,000
Effect of foreign currency translation	(25,864)
Balance as of October 1, 2022	$	1,348,494

Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)

Acquired intangibles as of October 1, 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	$	468,489	$	(267,918)	$	200,571
Agreements and relationships	269,597		(133,089)		136,508
Tradenames, trademarks and patents	12,545		(2,512)		10,033
Total acquired intangibles with definite lives	750,631		(403,519)		347,112
In-process technology	6,800		—		6,800
Total acquired intangibles	$	757,431	$	(403,519)	$	353,912

In-process technology as of October 1, 2022 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of October 1, 2022, these projects were expected to be completed during the fourth quarter of fiscal 2023. During the three and nine months ended October 1, 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 relationships	205,057		(130,187)		74,870
Tradenames, trademarks and patents	10,666		(3,153)		7,513
Total acquired intangibles	$	621,204	$	(387,939)	$	233,265

Amortization of acquired intangibles

Amortization expense for the three and nine months ended October 1, 2022 and October 2, 2021 by condensed consolidated income statement caption was as follows:

	Three Months Ended				Nine Months Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
	(In thousands)
Cost of product and maintenance	$	8,867	$	11,774	$	30,906	$	35,774
Amortization of acquired intangibles	3,946		5,000		13,543		14,661
Total amortization of acquired intangibles	$	12,813	$	16,774	$	44,449	$	50,435

Estimated amortization expense

As of October 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 - remaining period	$	14,870
2023	56,040
2024	54,280
2025	42,213
2026	36,298
2027	34,056
Thereafter	109,355
Total estimated amortization expense	$	347,112