Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

8.	INTANGIBLE ASSETS AND GOODWILL

Intangible assets

The Company’s finite-lived intangible assets are summarized as follows (in thousands):

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life (Years)
Developed technology	$	157,130	$	(41,968	)	$	115,162		5.1
Customer relationships		66,350		(18,559	)		47,791		4.9
Total	$	223,480	$	(60,527	)	$	162,953		5.1

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life (Years)
Developed technology	$	157,773	$	(16,013	)	$	141,760		6.0
Customer relationships		66,350		(6,133	)		60,217		5.7
Total	$	224,123	$	(22,146	)	$	201,977		5.9

The Company estimates that there is no significant residual value related to its intangible assets. Intangible assets amortization expense is summarized as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Cost of revenue	$	22,428	$	7,522	$	3,315
Sales and marketing		12,425		3,600		1,728
Research and development		3,528		2,674		721
Total amortization of acquired intangible assets	$	38,381	$	13,796	$	5,764

The following table outlines the estimated future amortization expense related to finite-lived intangible assets (in thousands):

Years Ending December 31,
2023	$	37,033
2024		36,816
2025		33,373
2026		18,692
2027		17,797
Thereafter		19,242
Total	$	162,953

Goodwill

The following table presents the changes in carrying amount of goodwill (in thousands):

	Year Ended December 31,
	2022			2021
Beginning balance	$	540,922		$	125,966
Additions		-			415,482
Other adjustments, net ⁽¹⁾		(1,794	)		(526	)
Ending balance	$	539,128		$	540,922

₍₁₎

_{Includes post-closing working capital adjustments and the effect of foreign currency translation}

The additions to goodwill in 2021 were due to the acquisitions of Levelset, LaborChart, and Indus, as disclosed in Note 7 to the consolidated financial statements. There was no impairment of goodwill during any period presented.