Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

11.GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets are primarily the result of business acquisitions.

In the first quarter of 2023, the Company performed an interim review of triggering events for each reporting unit, which would indicate whether a quantitative or qualitative assessment of goodwill impairment was necessary. As a result of the interim

triggering event review, the Company concluded an additional assessment was not necessary. No impairments to goodwill or indefinite life intangible assets were recorded during the three months ended March 31, 2023 and 2022.

Based on our impairment testing performed as of November 30, 2022, the China reporting unit's fair value exceeded its carrying value by approximately 5% and is most susceptible to future impairment risk. While it was concluded that the goodwill assigned to the China reporting unit was not impaired, it could be at risk of future impairment if the China reporting unit's long-term financial objectives are not achieved or if there are changes to estimates and assumptions from a number of factors, many of which are outside the Company's control.

The intangible assets balance as of March 31, 2023 is reflected below (in thousands):

		Weighted-
		Average
	Estimated	Remaining		Gross					Net
	Useful Life	Useful Life		Carrying		Accumulated			Carrying
	(Years)	(Years)		Amount		Amortization			Amount
Customer relationships	16–18		12.1	$	1,299,750	$	(428,161	)	$	871,589
Acquired technologies	3–7		1.7		187,950		(155,941	)		32,009
Subtotal					1,487,700		(584,102	)		903,598
Trademarks—indefinite life					190,470		—			190,470
Total intangible assets				$	1,678,170	$	(584,102	)	$	1,094,068

The intangible assets balance as of December 31, 2022 is reflected below (in thousands):

		Weighted-
		Average
	Estimated	Remaining		Gross					Net
	Useful Life	Useful Life		Carrying		Accumulated			Carrying
	(Years)	(Years)		Amount		Amortization			Amount
Customer relationships	16–18		12.3	$	1,299,750	$	(410,095	)	$	889,655
Acquired technologies	3–7	1.8			187,950		(149,256	)		38,694
Subtotal					1,487,700		(559,351	)		928,349
Trademarks—indefinite life					190,470		—			190,470
Total intangible assets				$	1,678,170	$	(559,351	)	$	1,118,819

Amortization expense for intangible assets was $24.8 million for the three months ended March 31, 2023 and 2022.

Future amortization expense for the remainder of the year ended December 31, 2023 and the following four years ended December 31 and thereafter for intangible assets as of March 31, 2023 is as follows (in thousands):

Years Ending December 31:
2023		74,252
2024		81,417
2025		72,949
2026		72,949
2027		72,949
Thereafter		529,082
Total	$	903,598