XML 32 R15.htm IDEA: XBRL DOCUMENT v3.24.0.1
Goodwill and Acquired Intangibles
 12 Months Ended
Dec. 31, 2023
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 2023 and 2022 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of January 1, 2022
$928,358 
Goodwill resulting from acquisitions456,323 
Effect of foreign currency translation(10,413)
Balance as of December 31, 20221,374,268 
Goodwill resulting from acquisitions160,083 
Effect of foreign currency translation1,494 
Balance as of December 31, 2023$1,535,845 
Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2023 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, 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$325,710 $(141,659)$184,051 
Agreements and relationships198,259 (61,395)136,864 
Tradenames, trademarks and patents13,460 (4,332)9,128 
Total acquired intangibles with definite lives$537,429 $(207,386)$330,043 
In-process technology6,800 — 6,800 
Total acquired intangibles$544,229 $(207,386)$336,843 
In-process technology as of December 31, 2023, consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of December 31, 2023, these projects were expected to be completed during the first quarter of fiscal 2024. During fiscal 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 relationships274,624 (137,847)136,777 
Tradenames, trademarks and patents12,979 (2,884)10,095 
Total acquired intangibles with definite lives$767,399 $(419,582)$347,817 
In-process technology6,800 — 6,800 
Total acquired intangibles$774,199 $(419,582)$354,617 
Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization expense for fiscal 2023, 2022 and 2021, by consolidated income statement caption, was as follows:
202320222021
 (In thousands)
Cost of product and maintenance$43,808 $41,348 $47,576 
Amortization of acquired intangibles18,162 18,470 19,640 
Total amortization of acquired intangibles$61,970 $59,818 $67,216 
As of December 31, 2023, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
 (In thousands)
2024$64,006 
202551,277 
202645,698 
202743,184 
2028
39,015 
Thereafter86,863 
Total estimated amortization expense$330,043