Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of the fair value of consideration over the fair value of net identifiable assets acquired. Identifiable intangible assets acquired in business combinations are recorded based on their fair values on the date of acquisition.

Intangible assets are classified as follows:


	December 31, 2024				December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Developed software and core technologies	$	1,142,840	$	(635,450)	$	1,146,022	$	(557,359)
Customer lists	261,895		(91,769)		289,874		(89,800)
Trade names	189,017		(150,646)		190,203		(143,880)
Total	$	1,593,752	$	(877,865)	$	1,626,099	$	(791,039)
Indefinite-lived intangible asset:
Trade name	$	357			$	357

Finite-lived intangible assets are amortized over their estimated useful lives of two years to seventeen years.

As of December 31, 2024, estimated future amortization expense for the intangible assets reflected above is as follows:


(in thousands)
2025	$	114,392
2026	115,188
2027	118,417
2028	112,188
2029	98,453
Thereafter	157,249
Total intangible assets subject to amortization, net	715,887
Indefinite-lived trade name	357
Other intangible assets, net	$	716,244

The changes in goodwill during the years ended December 31, 2024 and 2023 were as follows:


(in thousands)	2024		2023
Beginning balance - January 1	$	3,805,874	$	3,658,267
Acquisitions and adjustments(1)	868		122,635

Currency translation	(28,614)		24,972
Ending balance - December 31	$	3,778,128	$	3,805,874

(1) In addition to goodwill from acquisitions completed within the period, in accordance with the accounting for business combinations, we recorded adjustments to goodwill for the effect of changes in the provisional fair values of the assets acquired and liabilities assumed during the measurement period (up to one year from the acquisition date) as we obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Such adjustments are not material to our consolidated financial statements.

During the first quarter of 2024, we completed the annual impairment test for goodwill and the indefinite-lived intangible asset and determined that these assets had not been impaired as of the test date, January 1, 2024. No other events or circumstances changed during the year ended December 31, 2024 that would indicate that the fair values of our reporting unit and indefinite-lived intangible asset are below their carrying amounts.

ANSYS INC 10-K