Goodwill and Acquired Intangibles (Tables)

9 Months Ended

Sep. 30, 2023

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 September 30, 2023 were as follows:

	Gross Carrying Amount
	(In thousands)
Balance as of December 31, 2022	$	1,374,268
Goodwill resulting from acquisitions	128,447
Effect of foreign currency translation	(2,273)
Balance as of September 30, 2023	$	1,500,442

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

Acquired intangibles as of September 30, 2023 were as follows, excluding intangibles that were fully amortized as of December 31, 2022:

	Gross Carrying Amount		Accumulated Amortization		Acquired Intangibles, Net
	(In thousands)
Existing technology	$	323,359	$	(129,807)	$	193,552
Agreements and relationships	194,625		(56,671)		137,954
Tradenames, trademarks and patents	13,242		(3,931)		9,311
Total acquired intangibles with definite lives	531,226		(190,409)		340,817
In-process technology	6,800		—		6,800
Total acquired intangibles	$	538,026	$	(190,409)	$	347,617

In-process technology as of September 30, 2023 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of September 30, 2023, these projects were expected to be completed during the first quarter of fiscal 2024. During the three and nine months ended September 30, 2023, there were no transfers from in-process technology to existing technology.

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 relationships	274,624		(137,847)		136,777
Tradenames, trademarks and patents	12,979		(2,884)		10,095
Total acquired intangibles with definite lives	$	767,399	$	(419,582)	$	347,817
In-process technology	6,800		—		6,800
Total acquired intangibles	$	774,199	$	(419,582)	$	354,617

Amortization of acquired intangibles

Amortization expense for the three and nine months ended September 30, 2023 and October 1, 2022 by condensed consolidated income statement caption was as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
	(In thousands)
Cost of product and maintenance	$	10,991	$	8,867	$	31,869	$	30,906
Amortization of acquired intangibles	4,612		3,946		13,181		13,543
Total amortization of acquired intangibles	$	15,603	$	12,813	$	45,050	$	44,449

Estimated amortization expense

As of September 30, 2023, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:

	(In thousands)
2023 - remaining period	$	16,309
2024	63,382
2025	50,658
2026	44,879
2027	42,438
2028	38,371
Thereafter	84,780
Total estimated amortization expense	$	340,817