GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company accounts for goodwill in accordance with the authoritative guidance, which requires that goodwill and certain intangible assets are not amortized, but are subject to an annual impairment test. The Company performed a qualitative assessment in connection with its annual goodwill impairment test in the fourth quarter of 2021. As a result of the qualitative analysis, a quantitative impairment test was not deemed necessary. There was no impairment of goodwill or indefinite lived intangible assets as a result of the annual impairment test analysis completed during the fourth quarter of 2021.

The following table presents the change in goodwill during the six months ended June 30, 2022 (in thousands):


	Balance at January 1, 2022		Additions		Other			Balance at June 30, 2022
Goodwill	$	3,400,792	$	—	$	3,422	(1)	$	3,404,214

(1) Amount relates to adjustments to the purchase price allocation associated with the 2021 acquisition.

Intangible Assets

The Company has intangible assets which were primarily acquired in conjunction with business combinations and technology purchases. Intangible assets with finite lives are recorded at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally two to seven years, except for patents, which are amortized over the lesser of their remaining life or seven to ten years.

Intangible assets consist of the following (in thousands):


	June 30, 2022				December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Product related intangible assets	$	1,053,836	$	739,004	$	1,049,406	$	704,190
Other	664,791		288,369		664,791		249,714
Total	$	1,718,627	$	1,027,373	$	1,714,197	$	953,904

Amortization of product related intangible assets, which consists primarily of product related technologies and patents, was $17.5 million and $20.1 million for the three months ended June 30, 2022 and 2021, respectively, and $34.8 million and $31.1 million for the six months ended June 30, 2022 and 2021, respectively, and is classified as a component of Cost of net revenues in the accompanying condensed consolidated statements of income. Amortization of other intangible assets, which consist primarily of customer relationships, trade names and backlog was $19.4 million for the three months ended June 30, 2022 and 2021, respectively, and $38.7 million and $27.0 million for the six months ended June 30, 2022 and 2021, respectively, and is classified as a component of Operating expenses in the accompanying condensed consolidated statements of income.

The Company monitors its intangible assets for indicators of impairment. If the Company determines impairment has occurred, it will write-down the intangible asset to its fair value. For certain intangible assets where the unamortized balances exceeded the undiscounted future net cash flows, the Company measures the amount of the impairment by calculating the amount by which the carrying values exceed the estimated fair values, which are based on projected discounted future net cash flows.

Estimated future amortization expense of intangible assets with finite lives as of June 30, 2022 is as follows (in thousands):


Year ending December 31,
2022 (remaining six months)	$	74,135
2023	139,291
2024	131,429
2025	128,944
2026	127,373
Thereafter	90,082
Total	$	691,254