Net other identifiable assets and liabilities resulting from acquisitions

[Table of](#i090043fcb1da400aaac214abf3d3ee98_7) [Contents](#i090043fcb1da400aaac214abf3d3ee98_7)Definite-lived intangible assets acquired with Cadence’s fiscal 2021 acquisitions were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | Acquisition Date Fair Value |  | Weighted Average Amortization Period |
|   | (In thousands) |  |  (in years) |
| Existing technology | $ | 59,100  |  |  | 13.7 years |
| Agreements and relationships | 28,900  |  |  | 13.7 years |
| Tradenames, trademarks and patents | 4,600  |  |  | 14.3 years |
| Total acquired intangibles with definite lives | $ | 92,600  |  |  | 13.7 years |
|  |  |  |  |
|  |  |  |  |

2020 AcquisitionsIn fiscal 2020, Cadence acquired all of the outstanding equity of AWR Corporation (“AWR”) and Integrand Software, Inc. (“Integrand”). These acquisitions enhanced Cadence’s technology portfolio to address growing radio frequency design activity, driven by expanding use of 5G communications.The aggregate cash consideration for these acquisitions was $195.6 million, after taking into account cash acquired of $1.5 million. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence will also make payments to certain employees, subject to continued employment and other performance-based conditions, through the first quarter of fiscal 2023. With its acquisitions of AWR and Integrand, Cadence recorded $101.3 million of definite-lived intangible assets with a weighted average amortization period of approximately nine years. The definite-lived intangible assets related primarily to existing technology and customer agreements and relationships. Cadence also recorded $119.4 million of goodwill and $25.1 million of net liabilities, consisting primarily of deferred tax liabilities, assumed deferred revenue and trade accounts receivable. The recorded goodwill was primarily related to the acquired assembled workforce and expected synergies from combining operations of the acquired companies with Cadence. None of the goodwill related to the acquisitions of AWR and Integrand is deductible for tax purposes.Cadence completed one additional acquisition during fiscal 2020 that was not material to the consolidated financial statements. Pro Forma Financial InformationCadence has not presented pro forma financial information for any of the businesses it acquired during fiscal 2021 and fiscal 2020 because the results of operations for these businesses are not material to Cadence’s consolidated financial statements.Acquisition-Related Transaction CostsTransaction costs associated with acquisitions, which consist of professional fees and administrative costs, were not material during fiscal 2021, 2020 or 2019 and were expensed as incurred in Cadence’s consolidated income statements.NOTE 7. GOODWILL AND ACQUIRED INTANGIBLESGoodwillThe changes in the carrying amount of goodwill during fiscal 2021 and 2020 were as follows:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
|   | Gross CarryingAmount |
|   | (In thousands) |
| Balance as of December 28, 2019 | $ | 661,856  |  |
| Goodwill resulting from acquisitions | 120,564  |  |
| Effect of foreign currency translation | (333) |  |
| Balance as of January 2, 2021 | 782,087  |  |
| Goodwill resulting from acquisitions | 154,362  |  |
|  |  |
| Effect of foreign currency translation | (8,091) |  |
| Balance as of January 1, 2022 | $ | 928,358  |  |

Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2021 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.65
