Goodwill and Intangible Assets, net

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, net

Goodwill and Intangible Assets, net

The following table presents goodwill by reportable segment as of December 31, 2021 and 2020 (in thousands):

	December 31,
	2021		2020
IMT	$	2,175,301	$	1,786,416
Mortgages	198,491		198,491
Total	$	2,373,792	$	1,984,907

There is no goodwill attributable to the Homes segment. The goodwill recorded in connection with the acquisition of ShowingTime, which includes intangible assets that do not qualify for separate recognition, is not deductible for tax purposes and is included within the IMT segment.

The following tables present the detail of intangible assets as of the dates presented (in thousands):

	December 31, 2021
	Cost		Accumulated Amortization		Net
Customer relationships	$	138,500	$	(83,915)	$	54,585
Developed technology	133,664		(86,291)		47,373
Software	58,733		(19,542)		39,191
Trade names and trademarks	45,500		(9,181)		36,319
Intangibles-in-progress	1,516		—		1,516
Purchased content	3,941		(2,853)		1,088
Total	$	381,854	$	(201,782)	$	180,072

	December 31, 2020
	Cost		Accumulated Amortization		Net
Trade names and trademarks	$	36,500	$	(3,822)	$	32,678
Software	28,515		(11,483)		17,032
Developed technology	86,064		(70,270)		15,794
Customer relationships	87,600		(73,301)		14,299
Intangibles-in-progress	11,863		—		11,863
Purchased content	47,930		(44,829)		3,101
Total	$	298,472	$	(203,705)	$	94,767

Amortization expense recorded for intangible assets for the years ended December 31, 2021, 2020 and 2019 was $61.3 million, $50.5 million and $44.9 million, respectively. Amortization expense for trade names and trademarks and customer relationships intangible assets is included in sales and marketing expenses. Amortization expense for all other intangible assets is included in cost of revenue.

Estimated future amortization expense for intangible assets, including amortization related to future commitments (see Note 18), as of December 31, 2021 is as follows (in thousands):

2022	$	60,793
2023	38,882
2024	30,116
2025	21,337
2026	12,605
Thereafter	34,971
Total future amortization expense	$	198,704

We did not record any impairment costs related to our intangible assets for the years ended December 31, 2021 and 2019. During the year ended December 31, 2020, we recognized a non-cash impairment charge of $71.5 million related to our Trulia trade names and trademarks intangible asset, which historically had not been subject to amortization. The impairment charge is included in impairment costs in our consolidated statement of operations within our IMT and Mortgages segments for the year ended December 31, 2020 for $68.6 million and $2.9 million, respectively. In March 2020, we identified factors directly related to the COVID-19 pandemic that led us to conclude it was more likely than not that the $108.0 million carrying value of the asset exceeded its fair value. The most significant of such factors was a shortfall in projected revenue related to the Trulia brand compared to previous projections used to determine the carrying value of the intangible asset, primarily driven by a reduction in expected future marketing and advertising spend for Trulia. Accordingly, with the assistance of a third-party valuation specialist, we performed a quantitative analysis to determine the fair value of the intangible asset and concluded that our best estimate of its fair value was $36.5 million. The valuation was prepared using an income approach based on the relief-from-royalty method and relied on inputs with unobservable market prices including projected revenue, royalty rate, discount rate, and estimated tax rate, and therefore is considered a Level 3 measurement under the fair value hierarchy. In connection with this impairment analysis, we evaluated our expected future reduced marketing and advertising spend related to the Trulia trade names and trademarks intangible asset and concluded that this asset no longer has an indefinite life. In April 2020, we began amortizing the remaining $36.5 million carrying value. The remaining carrying value of the intangible asset is amortized on an accelerated basis commensurate with the projected cash flows expected to be generated by the intangible asset over a useful life of 10 years.