Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]


4. Goodwill and Other Intangible Assets

The change in goodwill during 2022 consisted of the following:


(dollars in thousands)	Total
Balance at December 31, 2021	$	1,058,640
Additions related to business combination(1)	3,610
Adjustments related to prior year business combination(2)	(2,232)
Adjustments related to dispositions(3)	(2,501)
Effect of foreign currency translation	(7,245)
Balance at December 31, 2022	$	1,050,272

(1)See Note 3 to these consolidated financial statements for a discussion of our acquisition of Kilter.

(2)See Note 3 to these consolidated financial statements for a discussion of the measurement period adjustments during the year ended December 31, 2022 to the estimated fair value of the EVERFI assets acquired and liabilities assumed.

(3)See Note 3 to these consolidated financial statements for a summary of our disposition of Blackbaud FIMS and DonorCentral NXT.

We have recorded intangible assets acquired in various business combinations based on their fair values at the date of acquisition. The table below sets forth the balances of each class of intangible asset and related amortization as of:


	December 31,
(dollars in thousands)	2022		2021
Finite-lived gross carrying amount
Customer relationships	$	569,009	$	606,409
Marketing assets	69,643		74,731
Developed technology	182,463		211,552
Content	17,900		17,900


Total finite-lived gross carrying amount	839,015		910,592
Accumulated amortization
Customer relationships	(146,948)		(151,258)
Marketing assets	(8,371)		(7,269)
Developed technology	(46,571)		(54,013)
Content	(1,989)		—


Total accumulated amortization	(203,879)		(212,540)
Intangible assets, net	$	635,136	$	698,052

During the year ended December 31, 2022, changes to the gross carrying amounts of intangible asset classes were primarily related to our business acquisitions and disposals as described in Note 3 to these consolidated financial statements, write-offs of fully amortized intangible assets and the effect of foreign currency translation.

Amortization expense

Amortization expense related to finite-lived intangible assets acquired in business combinations is allocated to cost of revenue on the consolidated statements of comprehensive income based on the revenue stream to which the asset contributes, except for marketing assets and non-compete agreements, for which the associated amortization expense is included in operating expenses.

The following table summarizes amortization expense of our finite-lived intangible assets:


	Years ended December 31,
(dollars in thousands)	2022		2021		2020
Included in cost of revenue:
Cost of recurring	$	47,085	$	33,132	$	36,835
Cost of one-time services and other	1,407		1,680		2,133
Total included in cost of revenue	48,492		34,812		38,968
Included in operating expenses	2,925		2,227		2,915
Total amortization of intangibles from business combinations	$	51,417	$	37,039	$	41,883

The following table outlines the estimated future amortization expense for each of the next five years for our finite-lived intangible assets as of December 31, 2022:


Years ending December 31, (dollars in thousands)	Amortization expense
2023	55,426
2024	62,015
2025	65,552
2026	63,915
2027	59,755
Total	$	306,663