Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

v3.22.1
GOODWILL AND INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

NOTE 6.GOODWILL AND INTANGIBLE ASSETS

The following table summarizes changes in goodwill during the three months ended March 31, 2022 and the twelve months ended December 31, 2021:

Goodwill (in thousands):

    

    

Balance at December 31, 2020

    

$

653,176

Additions

 

69,264

Adjustments due to currency translation

 

(621)

Balance at December 31, 2021

 

721,819

Additions

 

4,455

Measurement adjustments

2,572

Adjustments due to currency translation

 

1,293

Balance at March 31, 2022

$

730,139

The carrying amount of goodwill in foreign countries was $83.3 million as of March 31, 2022 and $82.1 million as of December 31, 2021.

The Company completed its most recent annual impairment analysis as of September 30, 2021. Based upon the results of this analysis, the Company concluded that no impairment of its goodwill or other intangible assets was indicated.

The following table sets forth the components of indefinite-lived and amortizable intangible assets as of March 31, 2022 and December 31, 2021 (in thousands):

    

    

March 31, 2022

December 31, 2021

Accumulated

Carrying

Accumulated

Carrying

Useful Life

Gross

Amortization

Value

Gross

Amortization

Value

in Years

Amortizable intangible assets:

Customer contracts

$

557,164

$

(238,358)

$

318,806

$

551,277

$

(225,348)

$

325,929

 

3-20

Trademarks and tradenames

12,904

(6,783)

 

6,121

12,784

(6,492)

 

6,292

 

7-20

Non-compete agreements

13,362

(6,364)

 

6,998

13,125

(5,573)

 

7,552

 

3-20

Patents

6,946

(6,502)

 

444

6,946

(5,509)

 

1,437

 

3-15

Other assets

2,217

(1,796)

 

421

2,150

(1,687)

 

463

 

10

Total amortizable intangible assets

$

592,593

$

(259,803)

332,790

$

586,282

$

(244,609)

341,673

 

  

Indefinite-lived intangible assets:

 

  

 

  

 

  

Trademarks and tradenames

 

103,399

 

102,684

 

  

Internet domains

 

2,227

 

2,227

 

  

Total indefinite-lived intangible assets

 

105,626

 

104,911

 

  

Total customer contracts and other intangible assets

$

438,416

$

446,584

 

  

The carrying amount of customer contracts in foreign countries was $40.9 million and $42.1 million as of March 31, 2022 and December 31, 2021, respectively. The carrying amount of trademarks and tradenames in foreign countries was $2.8 million and $2.9 million as of March 31, 2022 and December 31, 2021, respectively. The carrying amount of other intangible assets in foreign countries was $0.6 million and $0.7 million as of March 31, 2022 and December 31, 2021, respectively.

Amortization expense related to intangible assets was $15.1 million and $13.1 million for the three months ended March 31, 2022 and 2021, respectively. Customer contracts and other amortizable intangible assets are amortized on a straight-line basis over their economic useful lives.

Estimated amortization expense for the existing carrying amount of customer contracts and other intangible assets for each of the five succeeding fiscal years as of March 31, 2022 are as follows:

(in thousands)

    

  

2022 (excluding the three months ended March 31, 2022)

    

$

44,867

2023

 

55,441

2024

 

51,857

2025

 

42,806

2026

 

38,422