Goodwill, Finite-Lived, and Indefinite-Lived Intangibles

9 Months Ended

Sep. 30, 2020

Goodwill Disclosure [Abstract]

Goodwill, Finite-Lived, and Indefinite-Lived Intangibles

Goodwill, Finite-Lived, and Indefinite-Lived Intangibles

    Changes in the carrying amount of goodwill for the nine months ended September 30, 2020 and the year ended December 31, 2019 are reflected in the following table.

	September 30, 2020		December 31, 2019
	(Unaudited)
	(In thousands)
Beginning Balance	$	952,404	$	946,685
Additions	7,563		17,931
Purchase accounting adjustments	726		741
Foreign currency translation adjustments	(22,013)		(12,953)
Ending Balance	$	938,680	$	952,404

    The carrying value of finite-lived and indefinite-lived intangible assets at September 30, 2020 and December 31, 2019 are as follows:

	September 30, 2020		December 31, 2019
	(Unaudited)
	(In thousands)
Finite-lived intangible assets:
Customer relationships	$	95,788	$	83,012
Developed technology	19,718		19,979
Dealer network	6,595		6,726
Airport contracts	4,486		4,635
Trademarks	2,678		2,689
Store networks	2,420		2,500
Brand	889		918
Non-compete agreements	757		764
Database	212		212
Backlog	140		140
Total intangibles	133,683		121,575
Accumulated amortization	(80,819)		(74,620)
Finite-lived intangibles, net	$	52,864	$	46,955
Indefinite-lived intangibles:
Customer/territorial relationships	$	27,815	$	42,055

As a part of the 2009 acquisition of E-Z Data Ebix recognized a $14.2 million indefinite-lived intangible asset associated with acquired corporate customer relationships. During the third quarter 2020, the Company identified a potential indicator of impairment and performed a quantitative analysis to test for impairment. The Company determined the fair value of the intangible assets exceeded its carrying value, however the Company determined that the intangible asset no longer had an indefinite life. The Company has reclassified the $14.2 million to finite-lived and will amortize the value of this intangible over

an estimated remaining useful life of 15 years. In the third quarter of 2020 and each quarter subsequent, Ebix will recognize approximately $237 thousand of amortization related to the E-Z Data corporate customer relationships acquired.    Amortization expense recognized in connection with acquired intangible assets was $2.4 million and $7.1 million for the three and nine month periods ended September 30, 2020, respectively and $2.7 million and $7.9 million for the three and nine month periods ended September 30, 2019.