GOODWILL AND ACQUIRED INTANGIBLES

9 Months Ended

Sep. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill during the nine months ended September 30, 2025 were as follows:


	Gross Carrying Amount
	(In thousands)
Balance as of December 31, 2024	$	2,378,671
Goodwill resulting from acquisitions	144,653

Effect of foreign currency translation	121,586
Balance as of September 30, 2025	$	2,644,910

Acquired Intangibles, Net

Acquired intangibles as of September 30, 2025 were as follows:


	Gross Carrying Amount		Accumulated Amortization		Acquired Intangibles, Net
	(In thousands)
Existing technology	$	539,059	$	(237,528)	$	301,531
Agreements and relationships	447,399		(104,759)		342,640
Tradenames, trademarks and patents	39,054		(10,717)		28,337


Total acquired intangibles	$	1,025,512	$	(353,004)	$	672,508

Acquired intangibles as of December 31, 2024 were as follows:


	Gross Carrying Amount		Accumulated Amortization		Acquired Intangibles, Net
	(In thousands)
Existing technology	$	465,453	$	(199,126)	$	266,327
Agreements and relationships	386,365		(78,605)		307,760
Tradenames, trademarks and patents	28,113		(7,466)		20,647


Total acquired intangibles	$	879,931	$	(285,197)	$	594,734

Amortization expense from existing technology is included in cost of product and maintenance. Amortization expense for the three and nine months ended September 30, 2025 and September 30, 2024 by condensed consolidated income statement caption was as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
	(In thousands)
Cost of product and maintenance	$	15,751	$	17,615	$	46,744	$	42,451
Amortization of acquired intangibles	10,233		9,148		28,359		21,222
Total amortization of acquired intangibles	$	25,984	$	26,763	$	75,103	$	63,673

As of September 30, 2025, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:


	(In thousands)
2025 - remaining period	$	28,050
2026	110,800
2027	107,540
2028	102,824
2029	88,009
2030	53,086
Thereafter	182,199
Total estimated amortization expense	$	672,508

CADENCE DESIGN SYSTEMS INC 10-Q