Goodwill and Intangible Assets |
8. Goodwill and Intangible Assets The changes in the carrying amount of the Company’s goodwill balance from December 31, 2021 to March 31, 2022 were as follows (in thousands): | | | | Beginning balance | | $ | 528,548 | Foreign currency translation adjustment | | | (615) | Ending balance | | $ | 527,933 |
The Company’s intangible assets as of March 31, 2022 were as follows: | | | | | | | | | | | | March 31, 2022 | | | Gross | | Accumulated | | Net Carrying | | | Amount | | Amortization | | Value | | | | (in thousands) | Developed technology | | $ | 145,939 | | $ | (75,102) | | $ | 70,837 | Customer relationships | | | 95,124 | | | (43,223) | | | 51,901 | Trade names | | | 56,793 | | | (32,512) | | | 24,281 | Product backlog | | | 617 | | | (338) | | | 279 | Capitalized internal-use software | | | 54,836 | | | (19,624) | | | 35,212 | Other intangible assets | | | 1,535 | | | (756) | | | 779 | Total intangible assets | | $ | 354,844 | | $ | (171,555) | | $ | 183,289 |
The Company’s intangible assets as of December 31, 2021 were as follows: | | | | | | | | | | | | December 31, 2021 | | | Gross | | Accumulated | | Net Carrying | | | Amount | | Amortization | | Value | | | | (in thousands) | Developed technology | | $ | 146,142 | | $ | (69,802) | | $ | 76,340 | Customer relationships | | | 95,131 | | | (41,326) | | | 53,805 | Trade names | | | 56,778 | | | (31,093) | | | 25,685 | Product backlog | | | 634 | | | (287) | | | 347 | Capitalized internal-use software | | | 50,934 | | | (17,760) | | | 33,174 | Other intangible assets | | | 1,481 | | | (755) | | | 726 | Total intangible assets | | $ | 351,100 | | $ | (161,023) | | $ | 190,077 |
The Company capitalized $5.2 million and $4.2 million of internal-use software costs during the three months ended March 31, 2022 and 2021, respectively, which included $0.3 million and $0.2 million of stock-based compensation costs, respectively. Amortization expense for the three months ended March 31, 2022 and 2021 was $12.0 million and $9.3 million, respectively. As of March 31, 2022, expected amortization expense for intangible assets subject to amortization for the next five years is as follows: | | | |
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Year Ending December 31, | | March 31, 2022 |
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| | (in thousands) |
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2022 (remaining nine months) | | $ | 36,129 |
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2023 | | | 45,885 |
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2024 | | | 42,376 |
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2025 | | | 30,020 |
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2026 | | | 11,601 |
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Thereafter | | | 17,278 |
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Total | | $ | 183,289 |
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