Goodwill and Long-Lived Assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Property and Equipment

Property and Equipment. Property and equipment as of December 31, 2022 and 2021 consisted of the following (in thousands, except years):

	Useful Lives
	(Years)		December 31, 2022			December 31, 2021
Computer equipment	3-6		$	85,432		$	85,501
Leasehold improvements		10		23,996			25,183
Operating equipment	3-8			65,949			68,583
Furniture and fixtures		8		1,876			5,557
				177,253			184,824
Less - accumulated depreciation				(105,466	)		(111,244	)
Property and equipment, net			$	71,787		$	73,580

Rollforward of Goodwill

Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill for 2021 and 2022 is as follows (in thousands):

January 1, 2021 balance	$	272,322
Goodwill acquired during the period		50,550
Adjustments related to prior acquisitions		(60	)
Effects of changes in foreign currency exchange rates		(1,482	)
December 31, 2021 balance		321,330
Adjustments related to prior acquisitions		1,896
Impairment charge related to MobileCard Holdings, LLC		(7,211	)
Effects of changes in foreign currency exchange rates		(11,979	)
December 31, 2022 balance	$	304,036

Summary of Carrying Value of Other Intangible Assets

Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist of acquired customer contracts and software.

Acquired Customer Contracts. As of December 31, 2022 and 2021, the carrying values of our acquired customer contracts were as follows (in thousands):

	December 31, 2022							December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Acquired customer contracts (1)	$	165,497	$	(120,080	)	$	45,417	$	171,373	$	(114,166	)	$	57,207

Software. Software consists of: (i) software and similar intellectual property rights from various business acquisitions; and (ii) internal use software. As of December 31, 2022 and 2021, the carrying values of our software assets were as follows (in thousands):

	December 31, 2022							December 31, 2021
	Gross							Gross
	Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Amount		Amortization			Amount		Amount		Amortization			Amount
Acquired software (2)	$	83,543	$	(74,578	)	$	8,965	$	84,633	$	(72,675	)	$	11,958
Internal use software (3)		89,568		(75,759	)		13,809		97,407		(79,608	)		17,799
Total software	$	173,111	$	(150,337	)	$	22,774	$	182,040	$	(152,283	)	$	29,757

Summary of Aggregate Amortization Related to Intangible Assets

The aggregate amortization related to acquired customer contracts included in our operations for 2022, 2021, and 2020 was as follows (in thousands):

	2022		2021		2020
Acquired customer contracts (1)	$	11,605	$	9,240	$	9,963

(1)Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from one to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements.

The aggregate amortization related to software included in our operations for 2022, 2021, and 2020 was as follows (in thousands):

	2022		2021		2020
Acquired software amortization (2)	$	2,750	$	2,405	$	1,853
Internal use software amortization (3)		14,140		13,316		13,216
Total software amortization	$	16,890	$	15,721	$	15,069

(2)Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years. The amortization of acquired software is reflected as a cost of revenue in our Income Statements.

(3)Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years.

Summary of Carrying Values of Customer Contract Cost Assets

Customer Contract Costs. As of December 31, 2022 and 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):

	December 31, 2022							December 31, 2021
	Gross							Gross
	Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Amount		Amortization			Amount		Amount		Amortization			Amount
Customer contract incentives (4)	$	6,626	$	(3,798	)	$	2,828	$	4,627	$	(3,007	)	$	1,620
Capitalized costs (5)		63,081		(20,459	)		42,622		63,323		(25,136	)		38,187
Capitalized commission fees (6)		15,629		(6,344	)		9,285		11,078		(4,267	)		6,811
Total customer contract costs	$	85,336	$	(30,601	)	$	54,735	$	79,028	$	(32,410	)	$	46,618

Summary of Aggregate Amortization Related to Customer Contract Costs

The aggregate amortization related to our customer contract costs included in our operations for 2022, 2021, and 2020 was as follows (in thousands):

	2022		2021		2020
Customer contract incentives amortization (4)	$	792	$	687	$	708
Capitalized costs amortization (5)		15,918		17,955		13,803
Capitalized commission fees amortization (6)		3,028		2,576		2,679
Total customer contract costs amortization	$	19,738	$	21,218	$	17,190

(4)Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer accounts on, our solutions. Customer contract incentives are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2022, have termination dates that range from 2024 to 2026. The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements.

(5)Capitalized costs are related to: (i) customer conversion/set-up activities; and (ii) direct material costs to fulfill long-term revenue management solutions and managed services arrangements. These costs are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2022, range from 2023 to 2036, and are included in cost of revenue in our Income Statements.

(6)Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2022, range from 2023 to 2028, and are included in selling, general and administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less.