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Goodwill and intangible assets
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets Goodwill and intangible assets
The following table presents the changes in goodwill for the years ended December 31, 2021 and 2022:
As of December 31,
20212022
Opening balance$1,695,688 $1,731,027 
Goodwill relating to acquisitions consummated during the period44,216 — 
Impact of measurement period adjustments1,205 1,817 
Classified as held for sale— (1,625)
Effect of exchange rate fluctuations(10,082)(47,023)
Closing balance$1,731,027 $1,684,196 
10. Goodwill and intangible assets (Continued)
The following table presents the changes in goodwill by reporting unit for the year ended December 31, 2021:
Financial ServicesConsumer and HealthcareHigh Tech and ManufacturingTotal
Opening balance$420,172 $607,574 $667,942 $1,695,688 
Goodwill relating to acquisitions consummated during the period4,167 7,032 33,017 44,216 
Impact of measurement period adjustments35 309 861 1,205 
Effect of exchange rate fluctuations(3,117)(3,795)(3,170)(10,082)
Closing balance$421,257 $611,120 $698,650 $1,731,027 
The following table presents the changes in goodwill by reporting unit for the year ended December 31, 2022:
Financial ServicesConsumer and HealthcareHigh Tech and ManufacturingTotal
Opening balance$421,257 $611,120 $698,650 $1,731,027 
Impact of measurement period adjustments171 289 1,357 1,817 
Classified as held for sale— (1,625)— (1,625)
Effect of exchange rate fluctuations(12,692)(16,877)(17,454)(47,023)
Closing balance$408,736 $592,907 $682,553 $1,684,196 
During the years ended December 31, 2020, 2021 and 2022, in accordance with ASC 350, Intangibles-Goodwill and Other, the Company performed assessments to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on such assessments for the years ended December 31, 2020, 2021 and 2022, the Company concluded that it is not more likely than not that the fair values of any of the Company’s reporting units are less than their carrying amounts.
As of December 31, 2022, the Company classified goodwill (before impairment) amounting to $1,625 attributable to its Consumer and Healthcare segment as assets held for sale, and this amount has been written off. See Note 8 for additional information.
The total amount of the Company’s goodwill deductible for tax purposes was $326,795 and $291,377 as of December 31, 2021 and 2022, respectively.
The Company’s intangible assets are as follows:
As of December 31, 2021As of December 31, 2022
Gross carrying amountAccumulated amortization & ImpairmentNetGross carrying amountAccumulated amortization & ImpairmentNet
Customer-related intangible assets$489,974 $394,688 $95,286 $473,997 $411,706 $62,291 
Marketing-related intangible assets98,870 76,663 22,207 97,831 83,253 14,578 
Technology-related intangible assets171,772 119,630 52,142 126,406 113,560 12,846 
Total$760,616 $590,981 $169,635 $698,234 $608,519 $89,715 
Amortization expenses for intangible assets acquired as part of a business combination and disclosed in the consolidated statements of income under amortization of acquired intangible assets for the years ended December 31, 2020, 2021 and 2022 were $43,343, $58,448 and $42,667, respectively.
10. Goodwill and intangible assets (Continued)
During the year ended December 31, 2022, the Company sold certain intangible assets with a gross carrying value and accumulated amortization amounting to $9,894 and $7,272, respectively, and classified certain intangible assets with a gross carrying value and accumulated amortization amounting to $40,538 and $16,989, respectively, as assets held for sale relating to the Business, the sale of which was completed after December 31, 2022. See Note 8 for additional information.
Amortization expenses for internally-developed and other intangible assets disclosed in the consolidated statements of income under cost of revenue and selling, general and administrative expenses for the years ended December 31, 2020, 2021 and 2022 were $27,290, $24,987 and $14,768, respectively.
Amortization expenses for the technology-related, internally-developed intangible assets set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $74, $(157) and $51 for the years ended December 31, 2020, 2021 and 2022, respectively.
During the years ended December 31, 2020, 2021 and 2022, the Company tested for recoverability certain customer-related and technology-related intangible assets, including those under development, goodwill and certain property, plant and equipment, including those held for sale (see Note 8 for additional information), as a result of changes in the Company’s investment strategy and market trends which led to a decision to cease certain service offerings. Based on the results of its testing, the Company determined that the carrying value of certain assets tested were not recoverable and the Company recorded complete write-downs of the carrying values of these assets amounting to $14,083, $915 and $29,173 for the years ended December 31, 2020, 2021 and 2022, respectively. These write-downs have been recorded in “other operating (income) expense, net” in the consolidated statements of income.
The summary below presents the impairment charges (on intangibles and goodwill) and write-downs (on property, plant and equipment) recorded for various categories of assets during the years ended December 31, 2020, 2021 and 2022:
Year ended December 31,
202020212022
Technology related intangibles$5,179 $205 $25,266 
Customer related intangibles938 — 905 
Goodwill$— $— $1,625 
Total Intangibles$6,117 $205 $27,796 
Property, plant and equipment$7,966 $710 $1,377 
Total Property, plant and equipment$7,966 $710 $1,377 
Grand Total$14,083 $915 $29,173 
The estimated amortization schedule for the Company’s intangible assets for future periods as of December 31, 2022 is set out below:
For the year ending December 31:
2023$39,663 
202427,426 
202517,313 
20263,057 
2027 and beyond2,256 
Total$89,715