Acquisitions, Goodwill, and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Acquisitions, Goodwill, and Intangible Assets

Acquisitions, Goodwill, and Intangible AssetsDuring the three months ended March 31, 2023, we completed a business acquisition with total purchase consideration of $430 million in cash. Substantially all of the total consideration was allocated to $88 million of intangible assets and $343 million of goodwill. Goodwill generated from the business acquisition completed was primarily attributable to expected synergies and potential monetization opportunities. The amount of goodwill generated that was deductible for tax purposes was not material. Acquisition-related costs were immaterial and were expensed as incurred. Pro forma historical results of operations related to this business acquisition have not been presented because they are not significant to our condensed consolidated financial statements. We have included the financial results of this acquired business in our condensed consolidated financial statements from the date of acquisition.

Changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2023 are as follows (in millions):


	Family of Apps		Reality Labs		Total
Goodwill at December 31, 2022	$	19,250	$	1,056	$	20,306
Acquisitions	—		343		343
Goodwill at March 31, 2023	$	19,250	$	1,399	$	20,649

The following table sets forth the major categories of the intangible assets and their weighted‑average remaining useful lives (in millions):


		March 31, 2023						December 31, 2022
	Weighted-Average Remaining Useful Lives (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Acquired technology	5.0	$	513	$	(154)	$	359	$	507	$	(144)	$	363
Acquired patents	2.8	365		(284)		81		380		(289)		91
Other	1.9	60		(25)		35		86		(25)		61
Total finite-lived assets		938		(463)		475		973		(458)		515
Total indefinite-lived assets	N/A	474		—		474		382		—		382
Total intangible assets		$	1,412	$	(463)	$	949	$	1,355	$	(458)	$	897

Amortization expense of intangible assets was $47 million and $40 million for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in millions):


The remainder of 2023	$	132
2024	132
2025	86
2026	41
2027	24
Thereafter	60
Total	$	475