Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

6 Goodwill and Other Intangibles

The carrying amount of goodwill was $1.3 billion and $430 million at September 30, 2023 and December 31, 2022, respectively. The acquisition of Wyatt increased goodwill by $879 million, while the effect of foreign currency translation decreased goodwill by $1 million.

The Company’s intangible assets included in the consolidated balance sheets are detailed as follows (dollars in thousands):


	September 30, 2023							December 31, 2022
					Weighted-							Weighted-
	Gross				Average			Gross				Average
	Carrying		Accumulated		Amortization			Carrying		Accumulated		Amortization
	Amount		Amortization		Period			Amount		Amortization		Period
Capitalized software	$	616,406	$	460,730		5	years	$	589,604	$	441,414		5	years
Purchased intangibles		610,513		182,214		10	years		197,805		166,735		11	years
Trademarks		9,680		—		—			9,680		—		—
Licenses		14,142		7,753		7	years		14,070		6,729		6	years
Patents and other intangibles		109,371		78,206		8	years		104,139		73,021		8	years

Total	$	1,360,112	$	728,903		7	years	$	915,298	$	687,899		7	years

The Company capitalized intangible assets in the amounts of $10 million and $14 million in the three months ended September 30, 2023 and October 1, 2022, respectively, and $455 million and $38 million in the nine months ended September 30, 2023 and October 1, 2022, respectively. The increases in intangible assets are a result of the Wyatt acquisition.

The gross carrying value of intangible assets and accumulated amortization for intangible assets decreased by $6 million and $10 million, respectively, in the nine months ended September 30, 2023 due to the effects of foreign currency translation.

Amortization expense for intangible assets was $26 million and $15 million for the three months ended September 30, 2023 and October 1, 2022. Amortization expense for intangible assets was $56 million and $45 million for the nine months ended September 30, 2023 and October 1, 2022, respectively. Amortization expense for intangible assets is estimated to be $97 million per year for each of the next five years.