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Acquisition, Goodwill and Acquisition-Related Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract] |
Acquisition, Goodwill and Acquisition-Related Intangible Assets | Acquisition, Goodwill and Acquisition-Related Intangible Assets Acquisitions We had no material business acquisitions during the year ended December 31, 2023. During the year ended December 31, 2022, we completed two acquisitions of private companies for total consideration of $158.9 million, including $4.0 million in common stock and the remainder in cash. The purchase prices included $62.3 million of intangible assets, $77.5 million of goodwill and $19.1 million of net tangible assets acquired. We also incurred certain acquisition-related expenses of $4.7 million, which primarily consisted of retention bonuses to continuing employees as well as professional and consulting fees. The intangible assets are amortized on a straight-line basis over their estimated useful lives, as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except years):
|  | Acquisition Date Fair Value |  | Weighted Average Estimated Useful Life (in years)
Developed technology |  | $ | 30,200 |  |  | 5.7
Customer relationships |  | 28,700 |  |  | 7.0
Trade name |  | 3,400 |  |  | 3.0
Total intangible assets acquired |  | $ | 62,300 |  |  |
The purchase price allocation for the two acquisitions have been finalized. No changes were made to the purchase price allocation for the year ended December 31, 2023. Goodwill The changes in the carrying values of goodwill for the years ended December 31, 2023 and 2022 are as follows (in thousands):
|  | Amount
Balance at December 31, 2021 |  | $ | 188,397 |
Additions related to current year acquisitions |  | 85,048 |
Measurement-period adjustments |  | (7,521) |
Balance at December 31, 2022 |  | 265,924 |
Additions related to current year acquisition |  | 2,607 |
Balance at December 31, 2023 |  | $ | 268,531 |
The Company performed an annual qualitative test for goodwill impairment in the fourth quarter of the fiscal years ended December 31, 2023 and 2022 and determined that goodwill was not impaired. Acquisition-Related Intangible Assets The following table presents details of our acquisition-related intangible assets as of December 31, 2023 and 2022 (in thousands, except for years):
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Weighted Average Remaining Useful Life (in years)
| December 31, 2022 |  | Additions |  | December 31, 2023 |  | December 31, 2022 |  | Amortization |  | December 31, 2023 |  | December 31, 2022 |  | December 31, 2023 |
Developed technology | $ | 154,930 |  |  | $ | — |  |  | $ | 154,930 |  |  | $ | (79,036) |  |  | $ | (23,457) |  |  | $ | (102,493) |  |  | $ | 75,894 |  |  | $ | 52,437 |  |  | 4.0
Customer relationships | 54,620 |  |  | — |  |  | 54,620 |  |  | (14,097) |  |  | (7,700) |  |  | (21,797) |  |  | 40,523 |  |  | 32,823 |  |  | 4.7
Trade name | 12,390 |  |  | — |  |  | 12,390 |  |  | (6,602) |  |  | (2,280) |  |  | (8,882) |  |  | 5,788 |  |  | 3,508 |  |  | 1.6
Total | $ | 221,940 |  |  | $ | — |  |  | $ | 221,940 |  |  | $ | (99,735) |  |  | $ | (33,437) |  |  | $ | (133,172) |  |  | $ | 122,205 |  |  | $ | 88,768 |  |  | 4.2
Amortization expense related to acquisition-related intangible assets was $33.4 million, $33.7 million and $29.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, future estimated amortization expense related to the acquired-related intangible assets is as follows (in thousands):
Years Ending December 31, |  | Future Amortization Expense
2024 |  | $ | 26,759 |
2025 |  | 19,642 |
2026 |  | 17,260 |
2027 |  | 13,436 |
2028 |  | 10,037 |
Thereafter |  | 1,634 |
Total |  | $ | 88,768 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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