| Goodwill and Intangible Assets |
6. Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 were as follows:
|
|
Goodwill |
|
|
|
(in thousands) |
|
|
Balance as of December 31, 2018 |
$ |
632,370 |
|
|
Goodwill acquired |
|
134,255 |
|
|
Goodwill divested |
|
(2,682 |
) |
|
Foreign currency translation |
|
(2,790 |
) |
|
Balance as of December 31, 2019 |
$ |
761,153 |
|
|
Goodwill acquired |
|
162,747 |
|
|
Foreign currency translation |
|
15,359 |
|
|
Balance as of December 31, 2020 |
$ |
939,259 |
|
Intangible assets consisted of the following:
|
|
December 31, 2020 |
|
|
|
Weighted-
Average
Remaining
Useful Life -
Years |
|
|
Gross
Carrying
Amount |
|
|
Accumulated
Amortization |
|
|
Net |
|
|
|
(in thousands, except years) |
|
|
Domain names |
|
1.6 |
|
|
$ |
414 |
|
|
$ |
283 |
|
|
$ |
131 |
|
|
Acquired developed technology |
|
3.2 |
|
|
|
206,197 |
|
|
|
111,129 |
|
|
|
95,068 |
|
|
Patents |
|
4.9 |
|
|
|
19,860 |
|
|
|
9,130 |
|
|
|
10,730 |
|
|
|
|
|
|
|
$ |
226,471 |
|
|
$ |
120,542 |
|
|
$ |
105,929 |
|
|
|
December 31, 2019 |
|
|
|
Weighted-
Average
Remaining
Useful Life -
Years |
|
|
Gross
Carrying
Amount |
|
|
Accumulated
Amortization |
|
|
Net |
|
|
|
(in thousands except years) |
|
|
Domain names |
|
2.6 |
|
|
$ |
5,414 |
|
|
$ |
5,200 |
|
|
$ |
214 |
|
|
Trademarks |
|
— |
|
|
|
3,072 |
|
|
|
3,072 |
|
|
|
— |
|
|
Acquired developed technology |
|
3.6 |
|
|
|
175,414 |
|
|
|
95,921 |
|
|
|
79,493 |
|
|
Customer relationships |
|
— |
|
|
|
2,172 |
|
|
|
2,172 |
|
|
|
— |
|
|
Patents |
|
5.9 |
|
|
|
19,710 |
|
|
|
7,296 |
|
|
|
12,414 |
|
|
|
|
|
|
|
$ |
205,782 |
|
|
$ |
113,661 |
|
|
$ |
92,121 |
|
Amortization of intangible assets for the years ended December 31, 2020, 2019, and 2018 was $33.5 million, $33.4 million, and $42.6 million, respectively.
As of December 31, 2020, the estimated intangible asset amortization expense for the next five years and thereafter is as follows:
|
|
Estimated
Amortization |
|
|
|
(in thousands) |
|
|
Year ending December 31, |
|
|
|
|
2021 |
$ |
37,366 |
|
|
2022 |
|
28,406 |
|
|
2023 |
|
24,258 |
|
|
2024 |
|
13,971 |
|
|
2025 |
|
1,411 |
|
|
Thereafter |
|
517 |
|
|
Total |
$ |
105,929 |
|
|