Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

v3.22.2
GOODWILL AND INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 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 six months ended June 30, 2022 and the twelve months ended December 31, 2021 (in thousands):

Goodwill:

    

    

Balance at December 31, 2020

    

$

653,176

Additions

 

69,264

Adjustments due to currency translation

 

(621)

Balance at December 31, 2021

 

721,819

Additions

 

23,220

Measurement adjustments

72

Adjustments due to currency translation

 

(3,092)

Balance at June 30, 2022

$

742,019

The carrying amount of goodwill in foreign countries was $93.1 million as of June 30, 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 June 30, 2022 and December 31, 2021 (in thousands):

    

    

June 30, 2022

December 31, 2021

Accumulated

Carrying

Accumulated

Carrying

Useful Life

Gross

Amortization

Value

Gross

Amortization

Value

in Years

Amortizable intangible assets:

Customer contracts

$

568,655

$

(250,640)

$

318,015

$

551,277

$

(225,348)

$

325,929

 

3-20

Trademarks and tradenames

14,459

(6,728)

 

7,731

12,784

(6,492)

 

6,292

 

7-20

Non-compete agreements

13,692

(6,600)

 

7,092

13,125

(5,573)

 

7,552

 

3-20

Patents

6,934

(6,583)

 

351

6,946

(5,509)

 

1,437

 

3-15

Other assets

2,038

(1,704)

 

334

2,150

(1,687)

 

463

 

10

Total amortizable intangible assets

$

605,778

$

(272,255)

333,523

$

586,282

$

(244,609)

341,673

 

  

Indefinite-lived intangible assets:

 

  

 

  

 

  

Trademarks and tradenames

 

103,309

 

102,684

 

  

Internet domains

 

2,227

 

2,227

 

  

Total indefinite-lived intangible assets

 

105,536

 

104,911

 

  

Total customer contracts and other intangible assets

$

439,059

$

446,584

 

  

The carrying amount of customer contracts in foreign countries was $44.7 million and $42.1 million as of June 30, 2022 and December 31, 2021, respectively. The carrying amount of trademarks and tradenames in foreign countries was $4.5 million and $2.9 million as of June 30, 2022 and December 31, 2021, respectively. The carrying amount of other intangible assets in foreign countries was $0.8 million and $0.7 million as of June 30, 2022 and December 31, 2021, respectively.

Amortization expense related to intangible assets was $15.6 million and $13.1 million for the three months ended June 30, 2022 and 2021, respectively. Amortization expense related to intangible assets was $30.8 million and $26.1 million for the six months ended June 30, 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 June 30, 2022 are as follows:

(in thousands)

    

  

2022 (excluding the six months ended June 30, 2022)

    

$

30,721

2023

 

57,388

2024

 

53,808

2025

 

44,810

2026

 

40,278