Equity securities, realized gain

[Table of Contents](#ie5b53d08516744208c4d15ed88453ce2_7)5.    InvestmentsInvestments in Privately-Held Companies    Our investments in privately-held companies do not have readily determinable fair values. Their initial cost is subsequently adjusted to fair value on a non-recurring basis based on observable price changes from orderly transactions of identical or similar securities of the same issuer or for impairment. These investments are classified within Level III of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights, and obligations related to these securities. In addition, the valuation requires management judgment due to the absence of market price and lack of liquidity. The following table summarizes the activity related to our investments in privately-held companies held as of December 31, 2021 and 2020 (in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | December 31, 2021 |  | December 31, 2020 |
| Cost of investments |  | $ | 14,933  |  |  | $ | 3,000  |  |
| Cumulative impairment |  | —  |  |  | —  |  |
| Cumulative upward adjustments |  | 5,314  |  |  | 5,314  |  |
| Carrying amount of investments |  | $ | 20,247  |  |  | $ | 8,314  |  |

During the year ended December 31, 2019, we recorded a realized gain of $4.3 million upon the sale of one of our investments. In the year ended December 31, 2021, we did not record any adjustments to our investments, and in the years ended December 31, 2020 and 2019, we recorded $4.2 million and $1.2 million of unrealized gains, respectively. These unrealized gains were recorded on investments that were re-measured to fair value as of the date observable transactions occurred. The aforementioned realized and unrealized gains were recorded within other income, net in the accompanying consolidated statements of operations.6.    Goodwill and Acquisition-Related Intangible Assets GoodwillThe changes in the carrying values of goodwill for the years ended December 31, 2021 and 2020 are as follows (in thousands):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|  |  | Amount |
| Balance at December 31, 2019 |  | $ | 54,855  |  |
| Additions related to acquisitions (See Note 2 for additional information) |  | 134,841  |  |
| Balance at December 31, 2020 |  | 189,696  |  |
| Escrow receipts from past acquisitions |  | (1,299) |  |
| Balance at December 31, 2021 |  | $ | 188,397  |  |

The Company performed an annual test for goodwill impairment in the fourth quarter of the fiscal years ended December 31, 2021 and 2020 and determined that goodwill was not impaired.89
