Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2022 are as follows:


	Business		Consumer		Consolidated
	(In thousands)
Balance as of December 31, 2021	$	283,191	$	8,024	$	291,215
Adjustments to goodwill:
Acquisitions	15,511		—		15,511
Foreign exchange adjustment	(6,148)		—		(6,148)
Balance as of September 30, 2022	$	292,554	$	8,024	$	300,578

During the third quarter of 2022, the Company performed a quantitative analysis to determine whether it was more likely than not that goodwill impairment existed as of the annual impairment test date. As a result of this assessment, the Company concluded that the estimated fair values of each reporting unit exceeded their respective carrying values. Therefore, the Company did not record goodwill impairment for the three and nine months ended September 30, 2022. The Company also did not record goodwill impairment for the three and nine months ended September 30, 2021.

Intangible Assets, Net

Intangible assets, net, are summarized as follows:


	As of September 30, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Amortization Period
	(In thousands)
Amortizing intangible assets:
Technology	$	97,143	$	(41,938)	$	55,205	5.0 years
Customer relationships	31,795		(16,795)		15,000		10.0 years
Patents	10,234		(1,332)		8,902		12.8 years
Trademarks	1,275		(312)		963		5.0 years
Trade names	1,040		(273)		767		2.8 years
Other	914		(294)		620		4.1 years
Total intangible assets	$	142,401	$	(60,944)	$	81,457


	As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Amortization Period
	(In thousands)
Amortizing intangible assets:
Technology	$	90,626	$	(30,757)	$	59,869	5.1 years
Customer relationships	32,162		(15,164)		16,998		10.0 years
Patents	7,988		(1,137)		6,851		11.8 years
Trademarks	1,474		(135)		1,339		5.0 years
Trade names	460		(43)		417		2.1 years
Other	314		(234)		80		2.2 years
Total intangible assets	$	133,024	$	(47,470)	$	85,554

Amortization expense is calculated over the estimated useful life of the asset. A portion of this amortization is included in cost of revenue. Aggregate amortization expense for intangible assets, net was $4.8 million and $0.9 million for the three months ended September 30, 2022 and 2021, respectively, and $13.8 million and $2.2 million for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022, estimated annual amortization expense for the next five years and thereafter is as follows:


	Estimated Amortization Expense
	(In thousands)
Remainder of fiscal 2022	$	4,626
2023	17,753
2024	15,965
2025	15,567
2026	12,901
Thereafter	14,645
Total	$	81,457