Intangible Assets and Goodwill

Intangible assets subject to amortization that are not fully amortized are as follows (in thousands):


	Weighted average useful life	As of December 31, 2022						As of December 31, 2021
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	4.85	$	10,400	$	(347)	$	10,053	$	—	$	—	$	—
Reacquired rights	6.85	17,618		(419)		17,199		—		—		—
Backlog	1.85	6,700		(558)		6,142		—		—		—
Other	1.27	5,717		(3,572)		2,145		5,717		(1,881)		3,836
Total intangible assets		$	40,436	$	(4,897)	$	35,539	$	5,717	$	(1,881)	$	3,836

Amortization expense of intangible assets was not material for the years ended December 31, 2022 and 2021.

As of December 31, 2022, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in thousands):


Year ended December 31,	Amount
2023	$	9,637
2024	7,844
2025	4,597
2026	4,597
2027	4,250
Thereafter	4,614
Total	$	35,539

Changes in the carrying amount of goodwill, which is reported in the commercial segment, for the year ended December 31, 2022 are as follows (in thousands):


	Amount
Goodwill at December 31, 2021	$	1,869
Acquisitions	36,069
Goodwill at December 31, 2022	$	37,938

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Palantir Technologies Inc. Goodwill & Intangibles Disclosure

About Goodwill & Intangibles Disclosures

Other Available Disclosures