Goodwill and intangible assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents the changes in goodwill for the year ended December 31, 2022 and the three months ended March 31, 2023:


	For the year ended December 31, 2022	For the three months ended March 31, 2023
Opening balance	1,731,027	1,684,196
Impact of measurement period adjustments	1,817	—
Classified as held for sale	(1,625)	—
Effect of exchange rate fluctuations	(47,023)	3,290
Closing balance	1,684,196	1,687,486

The following table presents the changes in goodwill by reporting unit for the year ended December 31, 2022:


	Financial Services	Consumer and Healthcare	High Tech and Manufacturing	Total
Opening balance	421,257	611,120	698,650	1,731,027
Impact of measurement period adjustments	171	289	1,357	1,817
Classified as held for sale	—	(1,625)	—	(1,625)
Effect of exchange rate fluctuations	(12,692)	(16,877)	(17,454)	(47,023)
Closing balance	408,736	592,907	682,553	1,684,196

10. Goodwill and intangible assets (Continued)

The following table presents the changes in goodwill by reporting unit for the three months ended March 31, 2023:


	Financial Services	Consumer and Healthcare	High Tech and Manufacturing	Total
Opening balance	408,736	592,907	682,553	1,684,196
Effect of exchange rate fluctuations	864	1,171	1,255	3,290
Closing balance	409,600	594,078	683,808	1,687,486

As of December 31, 2022 and March 31, 2023, the Company reclassified goodwill (before impairment) amounting to $1,625 and $0, respectively, attributable to its Consumer and Healthcare segment as assets held for sale. See Note 8 for additional information.

The total amount of goodwill deductible for tax purposes was $291,377 and $284,288 as of December 31, 2022 and March 31, 2023, respectively.

The Company’s intangible assets are as follows:


	As of December 31, 2022						As of March 31, 2023
	Gross carrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	473,997	$	411,706	$	62,291	$	474,994	$	419,169	$	55,825
Marketing-related intangible assets	97,831		83,253		14,578		97,878		84,641		13,237
Technology-related intangible assets	126,406		113,560		12,846		127,101		116,119		10,982
	$	698,234	$	608,519	$	89,715	$	699,973	$	619,929	$	80,044

As of December 31, 2022 and March 31, 2023, the Company reclassified certain intangible assets with a gross carrying value of $40,538 and $0, respectively, and accumulated amortization of $16,989 and $0, respectively, to assets held for sale. See Note 8 for additional information.

Amortization expenses for intangible assets acquired as part of a business combination and disclosed in the consolidated statements of income under amortization of acquired intangible assets for the three months ended March 31, 2022 and 2023 were $11,306 and $8,255, respectively.

Amortization expenses for internally-developed and other intangible assets disclosed in the consolidated statements of income under cost of revenue and selling, general and administrative expenses for the three months ended March 31, 2022 and 2023 were $5,276 and $2,251, respectively.

During the three months ended March 31, 2022 and 2023, the Company tested the recoverability of intangibles, including those under development, goodwill and property, plant and equipment, including those held for sale (see Note 8 for additional information), as a result of changes in the Company’s investment strategy and market trends. Based on the results of its testing, the Company concluded that it is not more likely than not that the fair values of any of such assets are less than their carrying amounts. Accordingly, no impairment loss was recorded in the three months ended March 31, 2022 and 2023.