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Acquisitions, Goodwill, and Acquired Intangible Assets
 12 Months Ended
Dec. 31, 2022
Business Combinations [Abstract]  
Acquisitions, Goodwill, and Acquired Intangible Assets ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS
2020 Acquisition Activity
During 2020, we acquired certain companies for an aggregate purchase price of $1.2 billion, net of cash acquired, of which $1.1 billion was capitalized to in-process research and development intangible assets (“IPR&D”).
2021 Acquisition Activity
During 2021, we acquired certain companies for an aggregate purchase price of $496 million, net of cash acquired.
2022 Acquisition Activity
On March 17, 2022, we acquired MGM Holdings Inc., for cash consideration of approximately $6.1 billion, net of cash acquired, to provide more digital media content options for customers. We also assumed $2.5 billion of debt, which we repaid immediately after closing. The acquired assets primarily consist of $3.4 billion of video content and $4.9 billion of goodwill.
During 2022, we also acquired certain other companies for an aggregate purchase price of $141 million, net of cash acquired.
Pro forma results of operations have not been presented because the effects of the 2022 acquisitions, individually and in the aggregate, were not material to our consolidated results of operations. Acquisition-related costs were expensed as incurred and were not significant.
Goodwill
The goodwill of the acquired companies is primarily related to expected improvements in technology performance and functionality, as well as sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. The goodwill of the acquired companies is generally not deductible for tax purposes. The following summarizes our goodwill activity in 2021 and 2022 by segment (in millions):
North
America		InternationalAWSConsolidated
Goodwill - January 1, 2021$12,527 $1,288 $1,202 $15,017 
New acquisitions 230 60 76 366 
Other adjustments (1)1 (21)8 (12)
Goodwill - December 31, 202112,758 1,327 1,286 15,371 
New acquisitions3,943 1,054 — 4,997 
Other adjustments (1)(80)30 (30)(80)
Goodwill - December 31, 2022$16,621 $2,411 $1,256 $20,288 
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(1)Primarily includes changes in foreign exchange rates.
Intangible Assets
Acquired identifiable intangible assets are valued primarily by using discounted cash flows. These assets are included within “Other assets” on our consolidated balance sheets and consist of the following (in millions):
 
 December 31,
 20212022
  
Acquired
Intangibles,
Gross (1)		Accumulated
Amortization (1)		Acquired
Intangibles,
Net		Acquired
Intangibles,
Gross (1)		Accumulated
Amortization (1)		Acquired
Intangibles,
Net		Weighted
Average Life
Remaining
Finite-lived intangible assets (2):
Marketing-related$2,286 $(548)$1,738 $2,407 $(601)$1,806 18.6
Contract-based2,327 (565)1,762 3,661 (813)2,848 12.8
Technology- and content-based976 (610)366 883 (643)240 3.2
Customer-related197 (103)94 184 (128)56 2.2
Total finite-lived intangible assets$5,786 $(1,826)$3,960 $7,135 $(2,185)$4,950 14.4
IPR&D and other (3)$1,147  $1,147 $1,147  $1,147 
Total acquired intangibles $6,933 $(1,826)$5,107 $8,282 $(2,185)$6,097 
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(1)Excludes the original cost and accumulated amortization of fully-amortized intangibles.
(2)Finite-lived intangible assets, excluding acquired video content, have estimated useful lives of between one and twenty-five years, and are being amortized to operating expenses on a straight-line basis.
(3)Intangible assets acquired in a business combination that are in-process and used in research and development activities are considered indefinite-lived until the completion or abandonment of the research and development efforts. Once the research and development efforts are completed, we determine the useful life and begin amortizing the assets.
Amortization expense for acquired finite-lived intangibles was $509 million, $512 million, and $604 million in 2020, 2021, and 2022. Expected future amortization expense of acquired finite-lived intangible assets as of December 31, 2022 is as follows (in millions):
 
Year Ended December 31,
2023$530 
2024456 
2025371 
2026324 
2027314 
Thereafter2,955 
$4,950