Table of Contents ENPHASE ENERGY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table summarizes the fair values of the assets acquired and liabilities (in thousands): Net tangible assets acquired $ 8,387 Intangible assets 37,800 Goodwill 70,119 Net assets acquired $ 116,306 The excess of the consideration paid over the fair values assigned to the assets acquired and liabilities assumed represents the goodwill resulting from the acquisition. Goodwill is primarily attributable to expected synergies in the Company’s solar offerings and cross-selling opportunities. The entire goodwill amount is expected to be deductible for U.S. federal income tax purposes over 15 years. Intangible assets consist primarily of trade name and order backlog. Trade name intangible is attributable to marketing goods and services under the ClipperCreek brand and order backlog pertains to purchase orders with customers yet to be fulfilled. The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized: Fair Value Useful Life (In thousands) (Years) Based on Order backlog actual $ 600 shipments Trade name 37,200 5 Total identifiable intangible assets $ 37,800 The consolidated unaudited proforma revenue and net income for the two years presented below, which includes the acquisition of ClipperCreek, assuming the acquisition occurred on January 1, 2020, were (in thousands); Years Ended December 31, 2021 2020 Net revenues $ 1,401,803 $ 790,791 Net income $ 145,798 $ 139,126 The Company incurred and accrued costs related to this acquisition of $0.3 million and $0.5 million that were recorded in general and administrative expenses in the consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. Enphase Energy, Inc. | 2023 Form 10-K | 88