Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in carrying amounts of goodwill for the three months ended March 31, 2023 are as follows (in thousands):


	Digital Media		Cybersecurity and Martech		Consolidated
Balance as of January 1, 2023	$	1,065,989	$	525,485	$	1,591,474
Goodwill acquired (Note 3)	3,849		—		3,849


Purchase accounting adjustments (1)	513		—		513

Foreign exchange translation	540		1,308		1,848
Balance as of March 31, 2023	$	1,070,891	$	526,793	$	1,597,684

(1)Purchase accounting adjustments relate to measurement period adjustments to goodwill in connection with prior business acquisitions.

Goodwill as of March 31, 2023 and December 31, 2022 reflects accumulated impairment losses of $27.4 million and $27.4 million, respectively, in the Digital Media reportable segment.

Intangible Assets Subject to Amortization

As of March 31, 2023, intangible assets subject to amortization relate primarily to the following (in thousands):


	Weighted-Average Amortization Period	Historical Cost		Accumulated Amortization		Net
Trade names	10 years	$	263,060	$	130,986	$	132,074
Customer relationships (1)	8 years	690,363		497,910		192,453
Other purchased intangibles	8 years	482,501		373,718		108,783
Total		$	1,435,924	$	1,002,614	$	433,310

(1)The Company amortizes customer relationship assets in a pattern that best reflects the pace at which the asset’s benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first 4 to 5 years, despite the overall life of the asset.

As of December 31, 2022, intangible assets subject to amortization relate primarily to the following (in thousands):


	Weighted-Average Amortization Period	Historical Cost		Accumulated Amortization		Net
Trade names	10 years	$	261,614	$	125,422	$	136,192
Customer relationships (1)	8 years	687,798		479,741		208,057
Other purchased intangibles	8 years	481,973		363,407		118,566
Total		$	1,431,385	$	968,570	$	462,815

Amortization expense, included in General and administrative expense on the Condensed Consolidated Statements of Operations, was approximately $33.3 million and $41.2 million for the three months ended March 31, 2023 and 2022, respectively.