Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

In January 2021, the company changed its organizational structure to more effectively address evolving client needs. With these changes, the company changed its reportable segments, operating segments and reporting units. The realignment and change was deemed a triggering event, resulting in the company performing an interim goodwill analysis on the reporting units impacted by this segment change as of immediately before and immediately after the change. There were no impairment

charges resulting from this analysis. See Note 18 for additional information on the company’s operating and reportable segments.

As a result of the realignment, goodwill totaling $108.6 million was reallocated to reporting units on a relative fair value basis. The amount of goodwill at March 31, 2021 and December 31, 2020 was as follows: Enterprise Computing Solutions (ECS), $98.3 million and Other, $10.3 million.

On June 3, 2021, the company acquired Unify Square, Inc. resulting in goodwill of $134.3 million recorded in the company’s Digital Workplace Solutions (DWS) segment (see Note 3).

Changes in the carrying value of goodwill by reporting unit were as follows:


	Total		DWS		C&I		ECS		Other
Balance at December 31, 2020	$	108.6	$	—	$	—	$	98.3	$	10.3
Acquisition (see Note 3)	134.3		134.3		—		—		—
Balance at September 30, 2021	$	242.9	$	134.3	$	—	$	98.3	$	10.3

At September 30, 2021, the amount of goodwill allocated to reporting units with negative net assets within Other was $10.3 million.

Intangible Assets, Net

Intangible assets, net (see Note 3) at September 30, 2021 consists of the following:


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Technology	$	10.0	$	1.0	$	9.0
Customer relationships - Software and Software Solutions	5.2		0.6		4.6
Customer relationships - Consulting	3.0		0.1		2.9
Total	$	18.2	$	1.7	$	16.5

For the three and nine months ended September 30, 2021, amortization expense was $1.2 million and $1.7 million, respectively, included within selling, general and administrative expense on the consolidated statements of income (loss).

The future amortization relating to acquired intangible assets at September 30, 2021 was estimated as follows:


	Future Amortization Expense
Remainder of 2021	$	1.3
2022	5.2
2023	5.2
2024	2.9
2025	0.3
Thereafter	1.6
Total	$	16.5