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Acquisitions, Goodwill, and Acquired Intangible Assets
 12 Months Ended
Dec. 31, 2023
Business Combinations [Abstract]  
Acquisitions, Goodwill, and Acquired Intangible Assets ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS
2021 Acquisition Activity
During 2021, we acquired certain companies for an aggregate purchase price of $496 million, net of cash acquired.
2022 Acquisition Activity
On March 17, 2022, we acquired MGM Holdings Inc., for cash consideration of approximately $6.1 billion, net of cash acquired, to provide more digital media content options for customers. We also assumed $2.5 billion of debt, which we repaid immediately after closing. The acquired assets primarily consist of $3.4 billion of video content and $4.9 billion of goodwill.
During 2022, we also acquired certain other companies for an aggregate purchase price of $141 million, net of cash acquired.
2023 Acquisition Activity
On February 22, 2023, we acquired 1Life Healthcare, Inc. (One Medical), for cash consideration of approximately $3.5 billion, net of cash acquired, to provide health care options for customers. The acquired assets primarily consist of $1.3 billion of intangible assets and $2.5 billion of goodwill, which is allocated to our North America segment.
During 2023, we also acquired certain other companies for an immaterial aggregate purchase price, net of cash acquired.
Pro forma results of operations have not been presented because the effects of the 2023 acquisitions, individually and in the aggregate, were not material to our consolidated results of operations. Acquisition-related costs were expensed as incurred and were not significant.
In addition, in August 2022, we entered into an agreement to acquire iRobot Corporation, as amended in July 2023, for approximately $1.7 billion, including its debt, subject to customary closing conditions. In January 2024, we and iRobot agreed to terminate the transaction.
Goodwill
The goodwill of the acquired companies is primarily related to expected improvements in technology performance and functionality, as well as sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. The goodwill of the acquired companies is generally not deductible for tax purposes. The following summarizes our goodwill activity in 2022 and 2023 by segment (in millions):
North
America		InternationalAWSConsolidated
Goodwill - January 1, 2022$12,758 $1,327 $1,286 $15,371 
New acquisitions 3,943 1,054 — 4,997 
Other adjustments (1)(80)30 (30)(80)
Goodwill - December 31, 202216,621 2,411 1,256 20,288 
New acquisitions2,494 — — 2,494 
Other adjustments (1)11 1 (5)7 
Goodwill - December 31, 2023$19,126 $2,412 $1,251 $22,789 
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(1)Primarily includes changes in foreign exchange rates.Intangible Assets
Acquired identifiable intangible assets are valued primarily by using discounted cash flows. These assets are included within “Other assets” on our consolidated balance sheets and consist of the following (in millions):
 
 December 31,
 20222023
  
Acquired
Intangibles,
Gross (1)		Accumulated
Amortization (1)		Acquired
Intangibles,
Net		Acquired
Intangibles,
Gross (1)		Accumulated
Amortization (1)		Acquired
Intangibles,
Net		Weighted
Average Life
Remaining
Finite-lived intangible assets (2):
Marketing-related$2,407 $(601)$1,806 $2,643 $(738)$1,905 17.5
Contract-based3,661 (813)2,848 4,800 (1,129)3,671 11.7
Technology- and content-based883 (643)240 743 (340)403 5.1
Customer-related184 (128)56 749 (188)561 6.6
Total finite-lived intangible assets$7,135 $(2,185)$4,950 $8,935 $(2,395)$6,540 12.5
IPR&D and other (3)$1,147  $1,147 $1,147  $1,147 
Total acquired intangibles $8,282 $(2,185)$6,097 $10,082 $(2,395)$7,687 
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(1)Excludes the original cost and accumulated amortization of fully-amortized intangibles.
(2)Finite-lived intangible assets, excluding acquired video content, have estimated useful lives of between one and twenty-five years, and are being amortized to operating expenses on a straight-line basis.
(3)Intangible assets acquired in a business combination that are in-process and used in research and development activities are considered indefinite-lived until the completion or abandonment of the research and development efforts. Once the research and development efforts are completed, we determine the useful life and begin amortizing the assets.
Amortization expense for acquired finite-lived intangibles was $512 million, $604 million, and $706 million in 2021, 2022, and 2023. Expected future amortization expense of acquired finite-lived intangible assets as of December 31, 2023 is as follows (in millions):
 
Year Ended December 31,
2024$715 
2025631 
2026563 
2027552 
2028534 
Thereafter3,545 
$6,540