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Goodwill and Acquired Intangibles (Tables) | 6 Months Ended
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Jun. 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 six months ended June 30, 2023 were as follows:
| Gross Carrying Amount
| (In thousands)
Balance as of December 31, 2022 | $ | 1,374,268 |
Goodwill resulting from acquisitions | 47,448 |
Effect of foreign currency translation | 7,056 |
Balance as of June 30, 2023 | $ | 1,428,772 |
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill) | Acquired intangibles as of June 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 | $ | 309,288 |  |  | $ | (119,215) |  |  | $ | 190,073 |
Agreements and relationships | 186,745 |  |  | (52,712) |  |  | 134,033 |
Tradenames, trademarks and patents | 13,434 |  |  | (3,598) |  |  | 9,836 |
Total acquired intangibles with definite lives | 509,467 |  |  | (175,525) |  |  | 333,942 |
In-process technology | 6,800 |  |  | — |  |  | 6,800 |
Total acquired intangibles | $ | 516,267 |  |  | $ | (175,525) |  |  | $ | 340,742 |
In-process technology as of June 30, 2023 consisted of acquired projects that, if completed, will contribute to Cadence’s existing product offerings. As of June 30, 2023, these projects were expected to be completed during the fourth quarter of fiscal 2023. During the three and six months ended June 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 six months ended June 30, 2023 and July 2, 2022 by condensed consolidated income statement caption was as follows:
| Three Months Ended |  | Six Months Ended
| June 30, 2023 |  | July 2, 2022 |  | June 30, 2023 |  | July 2, 2022
| (In thousands)
Cost of product and maintenance | $ | 10,618 |  |  | $ | 10,068 |  |  | $ | 20,878 |  |  | $ | 22,039 |
Amortization of acquired intangibles | 4,302 |  |  | 4,633 |  |  | 8,569 |  |  | 9,597 |
Total amortization of acquired intangibles | $ | 14,920 |  |  | $ | 14,701 |  |  | $ | 29,447 |  |  | $ | 31,636 |
Estimated amortization expense | As of June 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 | $ | 30,545 |
2024 | 59,168 |
2025 | 46,456 |
2026 | 40,670 |
2027 | 38,212 |
2028 | 35,127 |
Thereafter | 83,764 |
Total estimated amortization expense | $ | 333,942 |

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