Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6. Goodwill and Intangible Assets

Goodwill

The following table presents the changes in the carrying amount of the goodwill for the nine months ended September 30, 2024 (in thousands):


	Amount
Ending balance as of December 31, 2023	$	2,361,643
Measurement period adjustment	234
Foreign currency translation adjustment	4,981
Ending Balance as of September 30, 2024	$	2,366,858

Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations.

Intangible Assets

The carrying amounts of the intangible assets other than goodwill as of September 30, 2024 and December 31, 2023 are as follows (in thousands):


	September 30, 2024						December 31, 2023
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Acquired developed and core technology	$	880,876	$	(874,093)	$	6,783	$	880,758	$	(871,085)	$	9,673
Other intangible assets:
Customer relationships	2,159,824		(1,575,021)		584,803		2,159,179		(1,489,398)		669,781
Trade names and trademark	81,610		(81,610)		—		81,651		(73,931)		7,720
Total other intangible assets	2,241,434		(1,656,631)		584,803		2,240,830		(1,563,329)		677,501
Total intangible assets, net	$	3,122,310	$	(2,530,724)	$	591,586	$	3,121,588	$	(2,434,414)	$	687,174

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 $30.8 million and $37.5 million for the three months ended September 30, 2024 and 2023, respectively. Total amortization expense related to intangible assets was $96.3 million and $111.9 million for the nine months ended September 30, 2024 and 2023, 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,
	2024		2023		2024		2023
Cost of revenues	$	947	$	3,013	$	3,008	$	8,776
Operating expenses	29,845		34,481		93,302		103,120
Total amortization of intangible assets	$	30,792	$	37,494	$	96,310	$	111,896

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, 2024, the amortization expense related to identifiable intangible assets in future periods is expected to be as follows (in thousands):


	Customer Relationships Intangible Asset		Other Intangible Assets		Total Intangible Assets

Remaining 2024	$	28,644	$	900	$	29,544
2025	100,041		2,158		102,199
2026	86,973		1,457		88,430
2027	75,461		716		76,177
2028	65,563		560		66,123
Thereafter	228,121		992		229,113
Total expected amortization expense	$	584,803	$	6,783	$	591,586