Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 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		(7	)		—			(7	)
Foreign currency translation		(6	)		(1	)		(7	)
Balance as of September 30, 2022	$	3,551			73			3,624

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


	September 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	$	3,655		303		3,352	$	3,662	$	119	$	3,543
Technology related intangibles		254		52		202		254		20		234
Trade name (finite life)		407		35		372		407		14		393
Total	$	4,316		390		3,926	$	4,323	$	153	$	4,170

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

Amortization expense from finite-lived intangible assets for the Successor three and nine months ended September 30, 2022 and three months ended September 30, 2021, and the Predecessor six months ended June 30, 2021, was $78 million, $237 million, $74 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 September 30, 2022 (in millions, except for years):


	Net		Weighted-Average
	Carrying		Remaining
	Amount		Useful Lives
Intangible assets at September 30, 2022:
Customer-related and contract-based intangibles	$	3,352		13.7
Technology-related intangibles		202		4.7
Trade name (finite life)		372		13.6
Total	$	3,926

Subsequent to September 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 (October - December)	$	61	$	11	$	7
2023		245		43		28
2024		245		43		28
2025		245		43		28
2026		245		42		27
Thereafter		2,311		20		254
Total amortization expense	$	3,352	$	202	$	372