Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table presents the changes in the carrying amount of the goodwill for the nine months ended September 30, 2022 (in thousands):


	Amount
Ending balance as of December 31, 2021	$	2,380,752
Foreign currency translation adjustment	(83,371)
Ending Balance as of September 30, 2022	$	2,297,381

Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. During the three and nine months ended September 30, 2022, the Company recorded a foreign currency translation adjustment reducing goodwill by $36.2 million and $83.4 million, respectively.

Intangible Assets

The carrying amounts of the intangible assets other than goodwill as of September 30, 2022 and December 31, 2021 are as follows (in thousands, except years):


	Weighted Average Useful Life (Years)	September 30, 2022						December 31, 2021
		Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Acquired developed and core technology	6	$	876,411	$	(850,741)	$	25,670	$	878,822	$	(823,965)	$	54,857
Other intangible assets:
Customer relationships	15	2,145,877		(1,323,718)		822,159		2,163,048		(1,214,492)		948,556
Trade names and trademark	7	81,071		(63,977)		17,094		81,894		(57,852)		24,042
Total other intangible assets		2,226,948		(1,387,695)		839,253		2,244,942		(1,272,344)		972,598
Total intangible assets, net		$	3,103,359	$	(2,238,436)	$	864,923	$	3,123,764	$	(2,096,309)	$	1,027,455

The Company amortizes its intangible assets over their remaining estimated useful life using cash flow projections, revenue projections, or the straight-line method. Total amortization expense related to intangible assets was $46.9 million and $61.5 million for the three months ended September 30, 2022 and 2021, respectively. Total amortization expense related to intangible assets was $142.1 million and $184.9 million for the nine months ended September 30, 2022 and 2021, respectively.

The allocation of the amortization of intangible assets for the periods indicated below is as follows (in thousands):


	Three Months Ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Cost of revenues	$	8,703	$	18,353	$	26,776	$	55,448
Operating expenses	38,231		43,097		115,351		129,483
Total amortization of intangible assets	$	46,934	$	61,450	$	142,127	$	184,931

Certain intangible assets are recorded in foreign currencies; and therefore, the gross carrying amount and accumulated amortization are subject to foreign currency translation adjustments.

As of September 30, 2022, the amortization expense related to identifiable intangible assets in future periods is expected to be as follows (in thousands):


	Acquired Developed and Core Technology		Other Intangible Assets(i)		Total Intangible Assets

Remaining 2022	$	8,490	$	38,035	$	46,525
2023	11,066		135,654		146,720
2024	3,350		119,842		123,192
2025	1,625		98,129		99,754
2026	926		85,448		86,374
Thereafter	213		362,145		362,358
Total expected amortization expense	$	25,670	$	839,253	$	864,923

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(i)Other Intangible Assets includes customer relationships, trade names and trademarks.