Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess purchase price over the fair value of net assets acquired, or net liabilities assumed, in a business combination. In accordance with ASC Topic 350, Intangibles – Goodwill and Other, the Company performs an annual impairment review in the fourth quarter and more frequently if events or changes in circumstances indicate that goodwill might be impaired. There was no indication that goodwill became impaired for the three months ended March 31, 2022.

Other intangible assets include customer relationships, non-compete arrangements, trade names, customer backlog, and developed software, which are being amortized over the assets’ estimated useful lives using the straight-line method. Estimated useful lives range from less than one year to ten years. Amortization of customer relationships, non-compete arrangements, trade names, customer backlog, and developed software is considered an operating expense and is included in “Amortization” in the accompanying Unaudited Condensed Consolidated Statements of Operations. The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in a lack of recoverability or revised useful life. There was no indication that other intangible assets became impaired for the three months ended March 31, 2022.

Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2022 are as follows (in thousands):


Balance at December 31, 2021	$	515,229
Measurement period adjustments for acquisitions	(120)
Effect of foreign currency translation adjustments	3,841
Balance at March 31, 2022	$	518,950

Intangible Assets with Definite Lives

The following table presents a summary of the Company’s intangible assets that are subject to amortization (in thousands):


	March 31, 2022						December 31, 2021
	Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts		Gross Carrying Amounts		Accumulated Amortization		Net Carrying Amounts
Customer relationships	$	126,791	$	(56,175)	$	70,616	$	125,433	$	(51,253)	$	74,180
Non-compete agreements	1,456		(812)		644		1,444		(736)		708
Customer backlog	3,053		(1,514)		1,539		3,025		(741)		2,284
Trade name	687		(327)		360		683		(155)		528
Developed software	7,101		(3,733)		3,368		6,982		(3,405)		3,577
Total	$	139,088	$	(62,561)	$	76,527	$	137,567	$	(56,290)	$	81,277

The estimated useful lives of identifiable intangible assets are as follows:


Customer relationships			5 - 10 years
Non-compete agreements			4 - 5 years
Customer backlog			1 year
Trade name			1 year
Developed software			1 - 7 years

Estimated annual amortization expense for the next five years ended December 31 and thereafter is as follows: (in thousands):


2022 remaining	$	17,010
2023	$	14,274
2024	$	12,173
2025	$	8,928
2026	$	6,556
Thereafter	$	17,586