Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

3. GOODWILL AND INTANGIBLE ASSETS

Goodwill. The changes in the carrying amount of goodwill for the six months ended June 30, 2022 were as follows (in thousands):


January 1, 2022 balance	$	321,330
Adjustments related to prior acquisitions		(2,299	)
Impairment charge related to MobileCard Holdings, LLC		(7,211	)
Effects of changes in foreign currency exchange rates		(10,598	)
June 30, 2022 balance	$	301,222

The adjustments related to prior acquisitions are primarily a result of the finalization of the purchase accounting for MobileCard Holdings, LLC. See Notes 5 and 6 for further discussion to include management's decision to shut-down this business resulting in the impairment charge recorded above.

Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist primarily of acquired customer contracts and software. As of June 30, 2022 and December 31, 2021, the carrying values of these assets were as follows (in thousands):


	June 30, 2022							December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Acquired customer contracts	$	165,963	$	(114,995	)	$	50,968	$	171,373	$	(114,166	)	$	57,207
Software		185,734		(159,879	)		25,855		182,040		(152,283	)		29,757
Total intangible assets	$	351,697	$	(274,874	)	$	76,823	$	353,413	$	(266,449	)	$	86,964

The total amortization expense related to other intangible assets for the second quarters of 2022 and 2021 were $7.7 million and $5.9 million, respectively, and for the six months ended June 30, 2022 and 2021 were $14.8 million and $11.5 million, respectively. Based on the June 30, 2022 net carrying value of our intangible assets, the estimated total amortization expense for each of the five succeeding fiscal years ending December 31 are: 2022 - $27.5 million; 2023 - $19.4 million; 2024 - $13.0 million; 2025 - $10.6 million; and 2026 - $7.5 million.

Customer Contract Costs. As of June 30, 2022 and December 31, 2021, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands):


	June 30, 2022							December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer contract costs	$	79,108	$	(30,578	)	$	48,530	$	79,028	$	(32,410	)	$	46,618

The total amortization expense related to customer contract costs for the second quarters of 2022 and 2021 were $3.8 million and $5.0 million, respectively, and for the six months ended June 30, 2022 and 2021 were $10.3 million and $9.7 million, respectively.