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Goodwill and Acquired Intangibles | 9 Months Ended
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Oct. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND ACQUIRED INTANGIBLES | GOODWILL AND ACQUIRED INTANGIBLES Goodwill The changes in the carrying amount of goodwill during the nine months ended October 2, 2021 were as follows:
| Gross Carrying Amount
| (In thousands)
Balance as of January 2, 2021 | $ | 782,087 |
Goodwill resulting from acquisitions | 150,021 |
Measurement period adjustments | (633) |
Effect of foreign currency translation | (5,526) |
Balance as of October 2, 2021 | $ | 925,949 |
Measurement period adjustments are the result of new information obtained about assets or liabilities that existed as of the acquisition date and, if known, would have resulted in changes to the initial recognition of those assets or liabilities as of that date. During the three months ended October 2, 2021, Cadence finalized certain estimates impacting total purchase consideration for its acquisition of NUMECA and recorded the resulting measurement period adjustment which decreased goodwill. Acquired Intangibles, Net Acquired intangibles as of October 2, 2021 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 | $ | 402,640 |  |  | $ | (242,829) |  |  | $ | 159,811 |
Agreements and relationships | 205,454 |  |  | (125,436) |  |  | 80,018 |
Tradenames, trademarks and patents | 10,741 |  |  | (2,942) |  |  | 7,799 |
Total acquired intangibles with definite lives | $ | 618,835 |  |  | $ | (371,207) |  |  | $ | 247,628 |
Acquired intangibles as of January 2, 2021 were as follows, excluding intangibles that were fully amortized as of December 28, 2019:
| Gross Carrying Amount |  | Accumulated Amortization |  | Acquired Intangibles, Net
| (In thousands)
Existing technology | $ | 370,838 |  |  | $ | (230,654) |  |  | $ | 140,184 |
Agreements and relationships | 180,023 |  |  | (113,629) |  |  | 66,394 |
Tradenames, trademarks and patents | 10,590 |  |  | (6,578) |  |  | 4,012 |
Total acquired intangibles with definite lives | $ | 561,451 |  |  | $ | (350,861) |  |  | $ | 210,590 |
Amortization expense from existing technology and maintenance agreements is included in cost of product and maintenance. Amortization expense for the three and nine months ended October 2, 2021 and September 26, 2020 by condensed consolidated income statement caption was as follows:
| Three Months Ended |  | Nine Months Ended
| October 2, 2021 |  | September 26, 2020 |  | October 2, 2021 |  | September 26, 2020
| (In thousands)
Cost of product and maintenance | $ | 11,774 |  |  | $ | 11,447 |  |  | $ | 35,774 |  |  | $ | 33,791 |
Amortization of acquired intangibles | 5,000 |  |  | 4,438 |  |  | 14,661 |  |  | 13,234 |
Total amortization of acquired intangibles | $ | 16,774 |  |  | $ | 15,885 |  |  | $ | 50,435 |  |  | $ | 47,025 |
As of October 2, 2021, the estimated amortization expense for acquired intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
| (In thousands)
2021 - remaining period | $ | 16,724 |
2022 | 50,022 |
2023 | 34,492 |
2024 | 32,732 |
2025 | 22,092 |
2026 | 17,087 |
Thereafter | 74,479 |
Total estimated amortization expense | $ | 247,628 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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