Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

(7) Goodwill and Intangible Assets, Net

The following table displays the changes in the gross carrying amount of goodwill (in thousands):


Balance at December 31, 2020	$	187,411
Increase due to acquisitions		348,794
Foreign currency translation		(5,042	)
Balance at December 31, 2021		531,163
Acquisition initial value adjustment		(1,788	)
Foreign currency translation		(20,594	)
Balance at December 31, 2022	$	508,781

There were no impairments recorded against goodwill in 2022, 2021 or 2020.

Intangible assets consisted of the following (in thousands):


					As of December 31, 2022
	Gross carrying amount		Weighted- average life (years)		Accumulated amortization			Net carrying amount
Amortizable intangible assets:
Developed technology	$	34,924		3.47	$	(21,217	)	$	13,707
Tradenames		16,513		4.55		(7,057	)		9,456
Customer relationships		204,697		8.34		(61,683	)		143,014
Total intangible assets	$	256,134			$	(89,957	)	$	166,177


					As of December 31, 2021
	Gross carrying amount		Weighted- average life (years)		Accumulated amortization			Net carrying amount
Amortizable intangible assets:
Developed technology	$	43,178		3.41	$	(16,214	)	$	26,964
Tradenames		28,250		4.13		(12,779	)		15,471
Customer relationships		219,850		8.30		(42,966	)		176,884
Total intangible assets	$	291,278			$	(71,959	)	$	219,319

Amortization expense for intangible assets was $43.0 million, $40.5 million and $20.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. Amortization expense of tradenames and customer relationships is included within general and administrative expenses, while amortization of developed technology is included in cost of revenue. The Company recorded amortization expense attributed to developed technology of $11.7 million, $12.1 million and $4.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. In December 2020, the Company completed an asset acquisition and recorded $17.1 million to developed technology. During the years ended December 31, 2022 and 2021 , the Company recognized a $1.0 million and a $3.0 million, respectively, reduction in the cost basis of the developed technology due to a partial return of the purchase price. The average useful life for the December 2020 asset acquisition of acquired technology is 4.0 years. During the year ended December 31, 2022, the Company retired $19.2 million of fully amortized intangible assets.

The expected amortization of the intangible assets, as of December 31, 2022, for each of the next five years and thereafter is as follows (in thousands):


2023	$	37,321
2024		31,811
2025		26,022
2026		20,212
2027		15,752
Thereafter		35,059
	$	166,177