Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of the fair value of consideration transferred over the fair value of net identifiable assets acquired. Identifiable intangible assets acquired in business combinations are recorded based on their fair values on the date of acquisition.

During the first quarter of 2019, we completed the annual impairment test for goodwill and the indefinite-lived intangible asset and determined that these assets had not been impaired as of the test date, January 1, 2019. No other events or circumstances changed during the year ended December 31, 2019 that would indicate that the fair values of our reporting unit and indefinite-lived intangible asset are below their carrying values.

Intangible assets are classified as follows:



	December 31, 2019					December 31, 2018
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Developed software and core technologies	$	635,063	$	(332,622	)	$	410,680	$	(314,730	)
Customer lists and contract backlog	269,629		(132,596		)	209,031		(117,614		)
Trade names	154,259		(117,379		)	137,225		(113,677		)
Total	$	1,058,951	$	(582,597	)	$	756,936	$	(546,021	)
Indefinite-lived intangible asset:
Trade name	$	357				$	357

Finite-lived intangible assets are amortized over their estimated useful lives of two years to seventeen years. Amortization expense for the intangible assets reflected above was $36.9 million, $40.8 million and $49.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

As of December 31, 2019, estimated future amortization expense for the intangible assets reflected above is as follows:



(in thousands)
2020	$	54,735
2021	53,231
2022	53,548
2023	52,474
2024	50,530
Thereafter	211,836
Total intangible assets subject to amortization, net	476,354
Indefinite-lived trade name	357
Other intangible assets, net	$	476,711

The changes in goodwill during the years ended December 31, 2019 and 2018 were as follows:



(in thousands)	2019			2018
Beginning balance - January 1	$	1,572,455		$	1,378,553
Acquisitions and adjustments⁽¹⁾	842,588			204,381
Currency translation	(1,763		)	(10,479		)
Ending balance - December 31	$	2,413,280		$	1,572,455

⁽¹⁾ In accordance with the accounting for business combinations, we recorded adjustments to goodwill for the effect of changes in the provisional fair values of the assets acquired and liabilities assumed during the measurement period (up to one year from the acquisition date) as we obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date.