Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2023

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, 2023 were as follows (in thousands):


January 1, 2023, balance	$	304,036
Adjustments related to prior acquisitions		(20	)
Impairment charge related to Keydok, LLC		(1,118	)
Effects of changes in foreign currency exchange rates		3,743
June 30, 2023, balance	$	306,641

See Notes 5 and 6 for further discussion of management's decision to shut down Keydok, LLC ("Keydok") 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, 2023 and December 31, 2022, the carrying values of these assets were as follows (in thousands):


	June 30, 2023							December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Acquired customer contracts	$	167,243	$	(126,757	)	$	40,486	$	165,497	$	(120,080	)	$	45,417
Software		175,130		(156,240	)		18,890		173,111		(150,337	)		22,774
Total other intangible assets	$	342,373	$	(282,997	)	$	59,376	$	338,608	$	(270,417	)	$	68,191

The total amortization expense related to other intangible assets for the second quarters of 2023 and 2022 were $6.4 million and $7.7 million, respectively, and for the six months ended June 30, 2023 and 2022 were $13.0 million and $14.8 million, respectively. Based on the June 30, 2023 net carrying value of our intangible assets, the estimated total amortization expense for each of the five succeeding fiscal years ending December 31 are: 2023 - $25.1 million; 2024 - $14.7 million; 2025 - $11.3 million; 2026 - $7.7 million; and 2027 - $3.1 million.

Customer Contract Costs. As of June 30, 2023 and December 31, 2022, 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, 2023							December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Customer contract costs	$	88,708	$	(34,594	)	$	54,114	$	85,336	$	(30,601	)	$	54,735

The total amortization expense related to customer contract costs for the second quarters of 2023 and 2022 were $4.8 million and $3.8 million, respectively, and for the six months ended June 30, 2023 and 2022 were $9.4 million and $10.3 million, respectively.