Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill

We have four reporting units: Gaming Peripherals, Gaming Components, Gaming Memory and Gaming Systems. The Gamer and Creator Peripherals segment includes the Gaming Peripherals reporting unit. The Gaming Components and Systems segment includes the Gaming Components, Gaming Memory and Gaming Systems reporting units.

The following table summarizes the changes in the carrying amount of goodwill by reportable segment (in thousands):

	Gaming Components and Systems			Gamer and Creator Peripherals			Total
December 31, 2021	$	145,310		$	171,744		$	317,054
Addition from business acquisition		3,485			28,486			31,971
Measurement period adjustments		235			782			1,017
Effect of foreign currency exchange rates		(99	)		(2,196	)		(2,295	)
December 31, 2022		148,931			198,816			347,747
Addition from business acquisition		—			7,007			7,007
Purchase price adjustment		—			(1,041	)		(1,041	)
Measurement period adjustments		—			21			21
Effect of foreign currency exchange rates		5			966			971
December 31, 2023	$	148,936		$	205,769		$	354,705

Intangible assets, net

The following table is a summary of intangible assets, net (in thousands):

	December 31, 2023						December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	47,221	$	21,206	$	26,015	$	53,726	$	24,088	$	29,638
Trade name		34,114		9,060		25,054		29,735		6,802		22,933
Customer relationships		218,453		138,800		79,653		218,542		116,919		101,623
Patent		34,781		17,031		17,750		33,198		11,764		21,434
Supplier relationship		6,136		2,045		4,091		6,129		1,021		5,108
Total finite-life intangibles		340,705		188,142		152,563		341,330		160,594		180,736
Indefinite life trade name		35,430		—		35,430		35,430		—		35,430
Other		16		—		16		89		—		89
Total intangible assets	$	376,151	$	188,142	$	188,009	$	376,849	$	160,594	$	216,255

In the year when an identified intangible asset becomes fully amortized, the fully amortized balances from the gross asset and accumulated amortization amounts are removed from the table above.

Amortization expense of intangible assets was recognized in our consolidated statements of operations as follows (in thousands):

	Years Ended December 31,
	2023		2022		2021
Cost of revenue	$	5,842	$	6,376	$	4,860
Sales, general and administrative		24,496		24,401		24,611
Product development		8,150		9,120		5,323
Total amortization of intangible assets	$	38,488	$	39,897	$	34,794

The estimated future amortization expense of intangible assets as of December 31, 2023 is as follows (in thousands):

	Amounts
2024	$	38,071
2025		37,700
2026		34,394
2027		24,721
2028		4,388
Thereafter		13,289
Total	$	152,563