Goodwill and Acquired Intangibles (Tables)

9 Months Ended

Sep. 29, 2012

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 29, 2012 were as follows:

	Gross Carrying Amount
	(In thousands)
Balance as of December 31, 2011	$	192,125
Goodwill resulting from acquisitions	39,680
Additions due to contingent consideration*	1,041
Effect of foreign currency translation	429
Balance as of September 29, 2012	$	233,275

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* Cadence accounts for business combinations with acquisition dates on or before January 3, 2009 under the purchase method in accordance with accounting standards that were authoritative at that time, whereby contingent consideration is added to goodwill as it is earned.

Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year

Acquired intangibles with finite lives as of September 29, 2012 were as follows, excluding intangibles that were fully amortized as of December 31, 2011:

	Gross Carrying Amount		Accumulated Amortization			Acquired Intangibles, Net
	(In thousands)
Existing technology	$	112,947	$	(26,561	)	$	86,386
Agreements and relationships	134,982		(35,705		)	99,277
Distribution rights	30,100		(27,843		)	2,257
Tradenames, trademarks and patents	12,485		(7,637		)	4,848
Total acquired intangibles	$	290,514	$	(97,746	)	$	192,768

Acquired intangibles with finite lives as of December 31, 2011 were as follows, excluding intangibles that were fully amortized as of January 1, 2011:

	Gross Carrying Amount		Accumulated Amortization			Acquired Intangibles, Net
	(In thousands)
Existing technology	$	90,433	$	(17,119	)	$	73,314
Agreements and relationships	118,060		(27,123		)	90,937
Distribution rights	30,100		(25,585		)	4,515
Tradenames, trademarks and patents	26,183		(21,715		)	4,468
Total acquired intangibles	$	264,776	$	(91,542	)	$	173,234

Amortization of acquired intangibles

Amortization of acquired intangibles for the three and nine months ended September 29, 2012 and October 1, 2011 was as follows:

	Three Months Ended				Nine Months Ended
	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
	(In thousands)
Cost of product	$	3,605	$	2,906	$	9,395	$	7,585
Cost of maintenance	269		—		269		—
Amortization of acquired intangibles	3,876		3,786		11,305		12,750
Total amortization of acquired intangibles	$	7,750	$	6,692	$	20,969	$	20,335

Estimated amortization expense

Estimated amortization expense for the following five fiscal years and thereafter is as follows:

	(In thousands)
2012 – remaining period	$	7,764
2013	27,976
2014	25,178
2015	24,831
2016	24,309
Thereafter	82,710
Total estimated amortization expense	$	192,768