Goodwill

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The following table sets forth the carrying amount and activity of goodwill as of December 31, 2022:


	December 31,
	2022		2021
Balance at the beginning of the period	$	113,574	$	1,739
Acquisitions (Note 3)	8,319		112,756
Measurement period adjustment for business combinations from prior year	24,745		—

Effect of exchange rate on goodwill	(10,175)		(921)
Balance at the end of the period	$	136,463	$	113,574

During the fiscal year ended December 31, 2022, the change in goodwill is primarily driven by $8,319 increase due to the acquisition of Symeo that was completed during the period, $24,745 increase related to the finalization of business combination valuations for TeraXion and ON Design and partially offset by $10,175 decrease in value due to effect of exchange rate on goodwill. See Note 3 — Business Combinations for a detailed discussion of goodwill acquired as well as adjustments due to finalization of the business combination valuations.

Goodwill increased by $112,756 in fiscal 2021 due to acquisitions completed during the period.

The Company performed an impairment test of its goodwill as of the first day of the fourth fiscal quarter in accordance with its regularly scheduled testing. The results of this test indicated that the Company’s goodwill was not impaired. There were no other indicators of impairment noted during the fiscal year ended December 31, 2022 and 2021.

Subsequent to the issuance of the financial statements for the fiscal year ended December 31, 2021, the Company identified a misstatement in the financial statements related to the recognition of deferred taxes in the purchase accounting for ON Design Israel. The Company recorded the following adjustment:


	December 31, 2021
	Initially reported		Adjustment		Corrected
Goodwill	$	115,206	$	(1,632)	$	113,574
Deferred tax liabilities, non-current	$	21,164	$	(1,632)	$	19,532