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Goodwill and Acquired Intangibles
12 Months Ended
Dec. 31, 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 2022 and 2021 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of January 2, 2021$782,087 
Goodwill resulting from acquisitions154,362 
Effect of foreign currency translation(8,091)
Balance as of January 1, 2022928,358 
Goodwill resulting from acquisitions456,323 
Effect of foreign currency translation(10,413)
Balance as of December 31, 2022$1,374,268 
Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2022 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 December 31, 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$479,796 $(278,851)$200,945 
Agreements and relationships274,624 (137,847)136,777 
Tradenames, trademarks and patents12,979 (2,884)10,095 
Total acquired intangibles with definite lives767,399 (419,582)347,817 
In-process technology6,800 — 6,800 
Total acquired intangibles$774,199 $(419,582)$354,617 
In-process technology as of December 31, 2022 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of December 31, 2022, these projects were expected to be completed during the fourth quarter of fiscal 2023. During fiscal 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 expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization expense for fiscal 2022, 2021 and 2020, by consolidated income statement caption, was as follows:
202220212020
 (In thousands)
Cost of product and maintenance$41,348 $47,576 $46,184 
Amortization of acquired intangibles18,470 19,640 18,009 
Total amortization of acquired intangibles$59,818 $67,216 $64,193 
As of December 31, 2022, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
 (In thousands)
2023$58,307 
202456,563 
202544,481 
202638,314 
202735,881 
Thereafter114,271 
Total estimated amortization expense$347,817