Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Other Intangible Assets

8.Goodwill and Other Intangible Assets

Goodwill has a balance of $3.0 billion as of both December 31, 2024 and 2023. During the year ended December 31, 2024, we recorded an out-of-period adjustment to record a previously unrecognized deferred tax asset for the future benefit of rollover options originally issued in 2019 in connection with a change of control. The recorded adjustment increased deferred tax assets by $9.1 million, decreased income tax benefit by $0.9 million for the year ended December 31, 2024, and decreased goodwill by $10.0 million.

The following table details the cost basis changes in the carrying amount of goodwill (in thousands):


Balance as of December 31, 2021	$	3,009,769
Decreases due to measurement period adjustments related to prior year acquisitions		(211)
Balance as of December 31, 2022		3,009,558
Goodwill recorded in connection with acquisitions (Note 6)		20,455
Balance as of December 31, 2023		3,030,013
Rollover options deferred tax asset adjustment		(10,014)
Total	$	3,019,999

Amortization for definite-lived intangible assets is as follows (in thousands, except useful life):


							Weighted-
					Net		Average
	Gross Carrying		Accumulated		Carrying		Remaining
	Amount		Amortization		Value		Useful Life
As of December 31, 2024
Customer relationships	$	1,429,400	$	(440,729)	$	988,671	11.1
Purchased developed technology		81,800		(50,875)		30,925	4.2
Tradenames and trademarks		40,700		(21,247)		19,453	4.7
Total	$	1,551,900	$	(512,851)	$	1,039,049
As of December 31, 2023
Customer relationships	$	1,429,400	$	(345,848)	$	1,083,552	12.3
Purchased developed technology		301,100		(221,558)		79,542	3.0
Tradenames and trademarks		40,700		(16,857)		23,842	6.0
Total	$	1,771,200	$	(584,263)	$	1,186,936

Amortization expense was $147.9 million, $159.4 million, and $167.5 million for the years ended December 31, 2024, 2023, and 2022, respectively.

Estimated future amortization expense is as follows (in thousands):


Year ending, December 31,
2025	$	110,093
2026		103,831
2027		103,831
2028		103,831
2029		101,915
Thereafter		515,548
Total	$	1,039,049