Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill, allocated by operating segments, were as follows (see Note 16):


(In thousands)	Payment Services - Puerto Rico & Caribbean		Payment Services - Latin America		Merchant Acquiring, net		Business Solutions		Total
Balance at December 31, 2020	$	160,972	$	52,754	$	138,121	$	45,823	$	397,670


Foreign currency translation adjustments	—		(1,067)		—		—		(1,067)
Balance at June 30, 2021	$	160,972	$	51,687	$	138,121	$	45,823	$	396,603

Goodwill is tested for impairment on an annual basis as of August 31, or more often if events or changes in circumstances indicate there may be impairment. The Company may test for goodwill impairment using a qualitative or a quantitative analysis. In the quantitative analysis, the Company compares the estimated fair value of the reporting units to their carrying values, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the fair value does not exceed the carrying value, an impairment loss is recorded for the excess of the carrying value over the fair value, limited to the recorded balance of goodwill. No impairment losses were recognized for the periods ended June 30, 2021 or 2020.

The carrying amount of other intangible assets at June 30, 2021 and December 31, 2020 was as follows:


		June 30, 2021
(In thousands)	Useful life in years	Gross amount		Accumulated amortization		Net carrying amount
Customer relationships	8 - 14	$	358,524	$	(259,325)	$	99,199
Trademarks	2 - 15	41,995		(36,085)		5,910
Software packages	3 - 10	307,975		(204,419)		103,556
Non-compete agreement	15	56,539		(40,519)		16,020
Other intangible assets, net		$	765,033	$	(540,348)	$	224,685


		December 31, 2020
(Dollar amounts in thousands)	Useful life in years	Gross amount		Accumulated amortization		Net carrying amount
Customer relationships	8 - 14	$	343,981	$	(246,088)	$	97,893
Trademarks	2 - 15	42,036		(35,467)		6,569
Software packages	3 - 10	289,205		(191,662)		97,543
Non-compete agreement	15	56,539		(38,635)		17,904
Other intangible assets, net		$	731,761	$	(511,852)	$	219,909

During the first quarter of 2021, the Company acquired a customer relationship in Puerto Rico amounting to $14.8 million that will be amortized over ten years. Revenue and expenses in connection with this customer relationship are included as part of the Merchant Acquiring segment.

Amortization expense related to other intangibles for the three and six months ended June 30, 2021 amounted to $14.3 million and $28.5 million, respectively, compared to $13.5 million and $27.1 million for the corresponding periods in 2020. During the six months period ended June 30, 2021, the Company recorded an impairment charge through cost of revenues amounting to $0.6 million for a software solution that will no longer be used. The impairment charge affected the Company’s Payment Services – Puerto Rico & Caribbean segment.

The estimated amortization expense of the balances outstanding at June 30, 2021 for the next five years is as follows:


(Dollar amounts in thousands)
Remaining 2021	$	27,557
2022	49,099
2023	43,845
2024	32,817
2025	11,359