Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

6. Goodwill and Intangible assets, net

The changes in the net carrying amount of goodwill are as follows (in millions):


	Employer			Professional
	Solutions			Services			Total
Balance as of December 31, 2021	$	3,564			74			3,638
Measurement period adjustments		(10	)		—			(10	)
Foreign currency translation		(3	)		(1	)		(4	)
Balance as of June 30, 2022	$	3,551			73			3,624

Intangible assets by asset class are as follows (in millions):


	June 30, 2022						December 31, 2021
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Intangible assets:
Customer-related and contract based intangibles	$	3,658		243		3,415	$	3,662	$	119	$	3,543
Technology related intangibles		254		41		213		254		20		234
Trade name (finite life)		407		28		379		407		14		393
Total	$	4,319		312		4,007	$	4,323	$	153	$	4,170

The net carrying amount of Intangible assets as of June 30, 2022 includes preliminary fair values for certain customer-related and contract-based identifiable intangible assets, technology-related intangible assets and tradename assets based on management’s preliminary estimate of fair value (see Note 4 “Acquisitions” for additional information).

The change in gross carrying amounts for customer-related and contract-based intangibles also relates to the unfavorable impact of foreign currency translation adjustments.

Amortization expense from finite-lived intangible assets for the Successor three and six months ended June 30, 2022 and the Predecessor three and six months ended June 30, 2021 was $80 million, $159 million, $50 million and $100 million respectively, which was recorded in Depreciation and intangible amortization in the Condensed Consolidated Statements of Comprehensive Income (Loss).

The following table reflects intangible assets net carrying amount and weighted-average remaining useful lives as of June 30, 2022 (in millions, except for years):


	Net		Weighted-Average
	Carrying		Remaining
	Amount		Useful Lives
Intangible assets at June 30, 2022:
Customer-related and contract-based intangibles	$	3,415		14.0
Technology-related intangibles		213		5.0
Trade name (finite life)		379		13.8
Total	$	4,007

Subsequent to June 30, 2022, the annual amortization expense is expected to be as follows (in millions):


	Customer-Related		Technology		Trade
	and Contract Based		Related		Name
	Intangibles		Intangibles		Intangible
2022 (July - December)	$	123	$	22	$	14
2023		245		43		28
2024		245		43		28
2025		245		43		28
2026		245		42		27
Thereafter		2,312		20		254
Total amortization expense	$	3,415	$	213	$	379