Intangible Assets and Liabilities

12 Months Ended

Dec. 31, 2022

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets and Liabilities

Intangible Assets and Liabilities

The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:

	December 31, 2022						December 31, 2021
In thousands	Gross		Accumulated (Amortization) Accretion		Net		Gross		Accumulated (Amortization) Accretion		Net
Intangible Assets
Core-developed technology	$	498,601	$	(492,782)	$	5,819	$	505,429	$	(491,047)	$	14,382
Customer contracts and relationships	322,360		(265,503)		56,857		336,421		(261,043)		75,378
Trademarks and trade names	72,156		(70,101)		2,055		74,551		(72,133)		2,418
Other	12,017		(11,807)		210		12,021		(11,670)		351
Total intangible assets	$	905,134	$	(840,193)	$	64,941	$	928,422	$	(835,893)	$	92,529
Intangible Liabilities
Customer contracts and relationships	$	(23,900)	$	23,900	$	—	$	(23,900)	$	23,441	$	(459)

A summary of intangible assets and liabilities activity is as follows:

	Year Ended December 31,
In thousands	2022		2021
Intangible assets, gross beginning balance	$	928,422	$	1,000,037
Intangible assets acquired	—		2,059
Intangible assets reclassified to held for sale	—		(39,089)
Effect of change in exchange rates	(23,288)		(34,585)
Intangible assets, gross ending balance	$	905,134	$	928,422
Intangible liabilities, gross beginning balance	$	(23,900)	$	(23,900)
Effect of change in exchange rates	—		—
Intangible liabilities, gross ending balance	$	(23,900)	$	(23,900)

Assumed intangible liabilities reflect the present value of the projected cash outflows for an existing contract where remaining costs are expected to exceed projected revenues.

On October 12, 2021, we completed the acquisition of 100% of the shares of SELC Group Limited (SELC), a private limited company incorporated in Ireland. SELC was previously a technology supplier to Itron. The acquisition provides value to Itron through the leverage of SELC's streetlight controls technology coupled with Itron's Smart Cities network and software platform. The acquisition will increase the pace of Smart City growth and innovation within Itron's Networked Solutions business for the benefit of our customers. The purchase was funded through cash on hand and resulted in the additions of intangible assets of $2.1 million and goodwill. Refer to Note 5: Goodwill for additional information on goodwill.

In conjunction with the business divestiture to Dresser (refer to Note 3: Certain Balance Sheet Components), the asset disposal group, which included $3.4 million of net intangible assets, was classified as held for sale during the fourth quarter of 2021. The disposal group was removed from the balance sheet when the transaction closed on February 28, 2022. Refer to Note 18: Sale of Businesses for additional information on the transaction.

Estimated future annual amortization is as follows:

Year Ending December 31,	Estimated Annual Amortization
In thousands
2023	$	18,960
2024	15,027
2025	14,297
2026	10,300
2027	5,630
Thereafter	727
Total intangible assets subject to amortization	$	64,941

Amortization Expense	Year Ended December 31,
In thousands	2022		2021		2020
Amortization expense	$	25,717	$	35,801	$	44,711

We have recognized amortization expense within operating expenses in the Consolidated Statements of Operations. These expenses relate to intangible assets acquired and liabilities assumed as part of business combinations.