Note 3 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill

The carrying value of goodwill is allocated to reporting units as follows:

Reporting Units	September 30, 2021		December 31, 2020
Americas		64,315		64,315
India		12,554		12,554
Malaysia		47,543		47,543
Saudi Arabia		54,840		54,840
Australia		4,145		4,145
Total	$	183,397	$	183,397

We perform a goodwill impairment analysis at least annually (in the fourth quarter of each year) unless indicators of impairment exist in interim periods. The assumptions used in the analysis are based on the Company’s internal budget. The Company projects revenue, operating margins, and cash flows for a period of five years and applies a perpetual long-term growth rate using discounted cash flows (DCF) method. These assumptions are reviewed annually as part of management’s budgeting and strategic planning cycles. These estimates may differ from actual results. In arriving at its forecasts, the Company considers past experience, economic trends and inflation, and industry and market trends, including the outbreak of COVID-19. The projections also take into account factors such as the expected impact from new client wins and expansion from existing clients' businesses and efficiency initiatives, and the maturity of the markets in which each business operates.

As of September 30, 2021, based on the management assessment, we concluded that there is no impairment of goodwill.

The following table presents the changes in goodwill during the nine months ended September 30, 2021 and year ended December 31, 2020:

	September 30, 2021		December 31, 2020
Opening balance		183,397		219,341
Impairment		-		(35,944	)
Ending balance	$	183,397	$	183,397

Intangible Assets

The following table presents our intangible assets:

	As of September 30, 2021
	Gross Intangibles		Accumulated Amortization		Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships		66,220		20,479		45,741		6.5
Brand		49,500		14,150		35,350		7.1
Trademarks		13,210		2,816		10,394		7.5
Other intangibles		2,130		920		1,210		4.9
	$	131,060	$	38,365	$	92,695

	As of December 31, 2020
	Gross Intangibles		Accumulated Amortization		Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships		66,220		16,289		49,931		6.5
Brand		49,500		11,408		38,092		7.1
Trademarks		13,210		2,155		11,055		7.5
Other intangibles		2,130		768		1,362		4.9
	$	131,060	$	30,620	$	100,440

As of September 30, 2021, based on the qualitative assessment, we concluded there is no impairment of the Company's intangible assets.

Expected future amortization of intangible as of  September 30, 2021 is as follows:

Years ending December 31,	Amount
Remainder of 2021		2,602
2022		10,350
2023		10,306
2024		10,252
2025		10,252
Thereafter		48,933