Acquisitions, Goodwill, and Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Acquisitions, Goodwill, and Intangible Assets

During the nine months ended September 30, 2023, we completed business acquisitions with total purchase consideration of $467 million in cash. Substantially all of the total consideration was allocated to $88 million of intangible assets and $366 million of goodwill. Goodwill generated from these business acquisitions 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 these business acquisitions have not been presented because they are not significant to our condensed consolidated financial statements, either individually or in aggregate. We have included the financial results of these acquired businesses in our condensed consolidated financial statements from their respective dates of acquisition.

Changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2023 are as follows (in millions):


	Family of Apps		Reality Labs		Total
Goodwill at December 31, 2022	$	19,250	$	1,056	$	20,306
Acquisitions	—		357		357
Adjustments	(4)		9		5
Goodwill at September 30, 2023	$	19,246	$	1,422	$	20,668

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


		September 30, 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	4.8	$	466	$	(155)	$	311	$	507	$	(144)	$	363
Acquired patents	2.5	321		(259)		62		380		(289)		91
Other	2.4	27		(12)		15		86		(25)		61
Total finite-lived assets		814		(426)		388		973		(458)		515
Total indefinite-lived assets	N/A	425		—		425		382		—		382
Total intangible assets		$	1,239	$	(426)	$	813	$	1,355	$	(458)	$	897

Amortization expense of intangible assets was $32 million and $45 million for the three months ended September 30, 2023 and 2022, respectively, and $123 million and $138 million for the nine months ended September 30, 2023 and 2022, respectively.

As of September 30, 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	$	37
2024	131
2025	93
2026	43
2027	24
Thereafter	60
Total	$	388