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Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

Changes in the carrying value of goodwill for the years ended December 31, 2021 and 2020 were as follows (in thousands):

 

Balance as of January 1, 2020

 

$

267,013

 

Acquisitions

 

 

961

 

Balance as of December 31, 2020

 

$

267,974

 

Acquisitions

 

 

11,301

 

Balance as of December 31, 2021

 

$

279,275

 

 

The Company completed its annual assessments of goodwill as of June 30, 2021 and October 1, 2021 based on qualitative factors and determined that the fair value of its goodwill significantly exceeded carrying value; as such, no impairment existed at those dates. The Company expects that its entire goodwill balance will be deductible for tax purposes.

Acquired intangible assets that are subject to amortization as of December 31, 2021 and 2020, were as follows (in thousands):

 

 

 

As of December 31, 2021

 

 

 

Cost

 

 

Accumulated Amortization

 

 

Net

 

Developed technology(1)

 

$

25,980

 

 

$

(5,247

)

 

$

20,733

 

Trade names and trademarks(1)

 

 

11,212

 

 

 

(2,308

)

 

 

8,904

 

Licenses

 

 

3,100

 

 

 

(413

)

 

 

2,687

 

Customer relationships

 

 

1,900

 

 

 

(253

)

 

 

1,647

 

Lead provider and broker relationships

 

 

1,700

 

 

 

(227

)

 

 

1,473

 

Total

 

$

43,892

 

 

$

(8,448

)

 

$

35,444

 

 

 

 

As of December 31, 2020

 

 

 

Cost

 

 

Accumulated Amortization

 

 

Net

 

Developed technology(1)

 

$

19,100

 

 

$

(955

)

 

$

18,145

 

Trade names and trademarks(1)

 

 

9,020

 

 

 

(1,157

)

 

 

7,863

 

Total

 

$

28,120

 

 

$

(2,112

)

 

$

26,008

 

 

(1)
Includes acquired intangible assets related to the Company’s acquisition of OnDeck. See Note 2 for additional information.

Developed technology is amortized over five years on a straight-line basis. Customer, lead provider and broker relationships are generally amortized over three to five years based on the pattern of economic benefits provided. Trade names and trademarks are

generally amortized over three to 20 years on a straight-line basis. Licenses are generally amortized over five years on a straight-line basis.

Amortization expense for acquired intangible assets was $6.9 million, $1.8 million and $1.1 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Estimated future amortization expense for the years ended December 31, is as follows (in thousands):

 

Year

 

Amount

 

2022

 

$

4,095

 

2023

 

 

4,095

 

2024

 

 

4,095

 

2025

 

 

3,331

 

2026

 

 

1,039