Goodwill, Finite-Lived, and Indefinite-Lived Intangibles

9 Months Ended

Sep. 30, 2021

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, 2021 and the year ended December 31, 2020 are reflected in the following table.

	September 30, 2021		December 31, 2020
	(Unaudited)
	(In thousands)
Beginning Balance	$	949,037	$	952,404
Additions	—		11,241
Purchase accounting adjustments	1,201		725
Foreign currency translation adjustments	(9,638)		(15,333)
Ending Balance	$	940,600	$	949,037

    The carrying value of finite-lived and indefinite-lived intangible assets at September 30, 2021 and December 31, 2020 are as follows:

	September 30, 2021		December 31, 2020
	(Unaudited)
	(In thousands)
Finite-lived intangible assets:
Customer relationships	$	102,436	$	96,616
Developed technology	20,243		19,867
Dealer network	6,548		6,653
Airport contracts	4,451		4,523
Trademarks	2,694		2,700
Store networks	2,401		2,440
Brand	882		896
Non-compete agreements	724		759
Database	212		212
Backlog	140		140
Total intangibles	140,731		134,806
Accumulated amortization	(91,419)		(83,926)
Finite-lived intangibles, net	$	49,312	$	50,880
Indefinite-lived intangibles:
Customer/territorial relationships	$	16,647	$	21,647

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.

The Company recorded a $6.2 million impairment charge in the fourth quarter of 2020 related to the IHC customer relationship indefinite-lived intangible asset associated with the Company's EbixHealth JV. In addition, the Company concluded that the remaining IHC customer relationship intangible was no longer indefinite-lived. The Company amortizes this intangible over the remaining estimated useful life of ten years.     

Amortization expense recognized in connection with acquired intangible assets was $2.7 million and $7.9 million for the three and nine month periods ended September 30, 2021, respectively, and $2.4 million and $7.1 million for the three and nine month periods ended September 30, 2020, respectively.