Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets are classified as follows:


	June 30, 2020						December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets:
Developed software and core technologies	$	665,779	$	(349,705)	$	635,063	$	(332,622)
Customer lists and contract backlog	258,239		(129,149)		269,629		(132,596)
Trade names	155,716		(119,543)		154,259		(117,379)
Total	$	1,079,734	$	(598,397)	$	1,058,951	$	(582,597)
Indefinite-lived intangible asset:
Trade name	$	357			$	357

Finite-lived intangible assets are amortized over their estimated useful lives of two years to seventeen years. Amortization expense for the intangible assets reflected above was $13.9 million and $8.6 million for the three months ended June 30, 2020 and 2019, respectively. Amortization expense for the intangible assets reflected above was $27.6 million and $16.9 million for the six months ended June 30, 2020 and 2019, respectively.

As of June 30, 2020, estimated future amortization expense for the intangible assets reflected above was as follows:


(in thousands)
Remainder of 2020	$	27,679
2021	55,045
2022	56,038
2023	55,690
2024	54,226
2025	50,507
Thereafter	182,152
Total intangible assets subject to amortization	481,337
Indefinite-lived trade name	357
Other intangible assets, net	$	481,694

The changes in goodwill during the six months ended June 30, 2020 and 2019 were as follows:


(in thousands)	2020		2019
Beginning balance – January 1	$	2,413,280	$	1,572,455
Acquisitions and adjustments⁽¹⁾	69,330		209,093

Currency translation	(8,311)		(5,814)
Ending balance – June 30	$	2,474,299	$	1,775,734

⁽¹⁾ In accordance with the accounting for business combinations, we recorded adjustments to goodwill for the effect of changes in the provisional fair values of the assets acquired and liabilities assumed during the measurement period (up to one year from the acquisition date) as we obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Such adjustments are not material to our consolidated financial statements.

During the first quarter of 2020, we completed the annual impairment test for goodwill and the indefinite-lived intangible asset and determined that these assets had not been impaired as of the test date, January 1, 2020. Given the adverse economic and market conditions caused by COVID-19, we considered a variety of qualitative factors to determine if an additional quantitative impairment test was required subsequent to our annual impairment test. Based on a variety of factors, including the excess of the fair values over the carrying amounts in the most recent impairment test, we determined it was not more likely than not that an impairment existed as of March 31, 2020. No other events or circumstances changed during the six months ended June 30, 2020 that would indicate that the fair values of our reporting unit and indefinite-lived intangible asset are below their carrying amounts.