Intangible assets, net and goodwill

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets at March 31, 2023 and December 31, 2022 were as follows:


	March 31, 2023
(In thousands)	(Unaudited)						December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Capitalized software development costs	$	14,216	$	(10,560)	$	3,656	$	18,810	$	(15,321)	$	3,489
Acquired technology	177,521		(60,929)		116,592		167,686		(54,351)		113,335
Customer relationships	96,935		(29,150)		67,785		98,827		(33,514)		65,313
Patents	37,395		(31,756)		5,639		37,240		(31,368)		5,872
Other	29,516		(14,981)		14,535		34,078		(21,237)		12,841
Total	$	355,583	$	(147,376)	$	208,207	$	356,641	$	(155,791)	$	200,850

Amortization of capitalized software development costs is computed on an individual product basis for those products available for market and is recognized based on the product’s estimated economic life, which generally range from three to six years. Acquired technology, customer relationships and other intangible assets are amortized over their useful lives, which generally range from five to ten years. Patents are amortized using the straight-line method over their estimated period of benefit, which generally range from ten to seventeen years. Total intangible assets amortization expenses were $12.7 million and $12.4 million for the three months ended March 31, 2023 and 2022, respectively.

Goodwill

The carrying amount of goodwill as of March 31, 2023 was as follows:


	Amount
	(In thousands)
Balance as of December 31, 2022	$	615,734
Acquisitions	12,050

Foreign currency translation impact	3,095

Balance as of March 31, 2023 (unaudited)	$	630,879

The excess purchase price over the fair value of assets acquired is recorded as goodwill. As businesses are acquired, we assign assets acquired (including goodwill) and liabilities assumed to either our existing reporting unit or a newly identified reporting unit as of the date of the acquisition. In the event a disposal group meets the definition of a business, goodwill is allocated to the disposal group based on the relative fair value of the disposal group to the related reporting unit. As we have one operating segment comprised of components with similar economic characteristics, we allocate goodwill to one reporting unit for goodwill impairment testing. Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. Our annual impairment test is performed in the fourth quarter of each year.

No impairment of goodwill was identified during the three months ended March 31, 2023 or the twelve months ended December 31, 2022.