v3.23.1
Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The carrying amount of goodwill was $512.9 million at both March 31, 2023 and December 31, 2022. Goodwill represents the excess purchase price over the fair value of net assets acquired. The annual impairment test was performed as of October 31, 2022. No impairment of goodwill was identified during 2022, and no impairment of goodwill was identified during the three months ended March 31, 2023.
Intangible assets at March 31, 2023 and December 31, 2022 were as follows:
As of March 31, 2023As of December 31, 2022
Gross AmountAccumulated AmortizationNet Carrying AmountGross AmountAccumulated AmortizationNet Carrying Amount
Customer relationships$62,785 $(44,139)$18,646 $62,785 $(40,981)$21,804 
Non-compete agreements13,275 (9,327)3,948 13,275 (8,642)4,633 
Trademarks19,870 (10,064)9,806 19,870 (8,663)11,207 
Acquired technology 157,639 (80,792)76,847 157,638 (74,910)82,728 
Capitalized software development costs35,313 (4,593)30,720 28,519 (3,210)25,309 
$288,882 $(148,915)$139,967 $282,087 $(136,406)$145,681 
The Company recorded intangible assets primarily from various prior business combinations. Intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from two to seven years. Amortization expense included in cost of revenues on the condensed consolidated statements of comprehensive income (loss) was $5.9 million and $5.6 million for the three months ended March 31, 2023 and 2022, respectively. Amortization expense included in operating expenses on the condensed consolidated statements of comprehensive income (loss) was $5.3 million and $4.4 million for the three months ended March 31, 2023 and 2022, respectively.
The Company capitalized software development costs in the amount of $6.8 million and $4.3 million during the three months ended March 31, 2023 and 2022, respectively. The Company recognized $1.4 million and $0.4 million of amortization of capitalized software development costs during the three months ended March 31, 2023 and 2022, respectively.
The estimated future amortization expense related to intangible assets as of March 31, 2023 was as follows:
Amortization
Year Ended December 31,
2023 (April 1 to December 31)
$38,195 
202445,993
202528,150
202621,582
20275,646
Thereafter401
Total amortization$139,967