Property and Equipment. Property and equipment at December 31 consisted of the following (in thousands, except years):


	Useful Lives
	(Years)		2021			2020
Computer equipment	3-6		$	85,501		$	87,289
Leasehold improvements		10		25,183			25,442
Operating equipment	3-8			68,583			67,097
Furniture and fixtures		8		5,557			7,004
				184,824			186,832
Less - accumulated depreciation				(111,244	)		(105,073	)
Property and equipment, net			$	73,580		$	81,759

Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill for 2020 and 2021 is as follows (in thousands):


January 1, 2020 balance	$	259,164
Goodwill acquired during the period		9,083
Adjustments related to prior acquisitions		(60	)
Effects of changes in foreign currency exchange rates		4,135
December 31, 2020 balance		272,322
Goodwill acquired during the period		50,550
Adjustments related to prior acquisitions		(60	)
Effects of changes in foreign currency exchange rates		(1,482	)
December 31, 2021 balance	$	321,330

Goodwill acquired during 2020 relates to the acquisition of Tekzenit, Inc. Goodwill acquired during 2021 primarily relates to the acquisitions of: (i) Tango Telecom Limited; (ii) Kitewheel, LLC; (iii) Keydok, LLC; and (iv) DGIT Systems Pty Ltd, as well as the additional investment in MobileCard Holdings, LLC. See Note 7 for discussion regarding these acquisitions.

Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist of acquired customer contracts and software. Other intangible assets as of December 31, 2021 include assets acquired in the Tango Telecom Limited, Kitewheel LLC, and DGIT Systems Pty Ltd business acquisitions (see Note 7).

Acquired Customer Contracts. As of December 31, 2021 and 2020, the carrying values of our acquired customer contracts were as follows (in thousands):


	December 31, 2021							December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Acquired customer contracts (1)	$	171,373	$	(114,166	)	$	57,207	$	153,790	$	(105,778	)	$	48,012

The aggregate amortization related to acquired customer contracts included in our operations for 2021, 2020, and 2019 was as follows (in thousands):


	2021		2020		2019
Acquired customer contracts (1)	$	9,240	$	9,963	$	10,374

(1)

Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from one to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements.

The remaining weighted-average amortization period of the acquired customer contract as of December 31, 2021 was approximately 88 months. Based on the net carrying value of these acquired customer contracts, the estimated amortization for each of the five succeeding fiscal years ending December 31 will be: 2022 – $11.2 million; 2023 – $9.7 million; 2024 – $8.6 million; 2025 – $8.0 million; and 2026 – $6.0 million.

Software. Software consists of: (i) software and similar intellectual property rights from various business acquisitions; and (ii) internal use software. As of December 31, 2021 and 2020, the carrying values of our software assets were as follows (in thousands):


	2021							2020
	Gross							Gross
	Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Amount		Amortization			Amount		Amount		Amortization			Amount
Acquired software (2)	$	84,633	$	(72,675	)	$	11,958	$	75,602	$	(70,242	)	$	5,360
Internal use software (3)		97,407		(79,608	)		17,799		90,687		(69,594	)		21,093
Total software	$	182,040	$	(152,283	)	$	29,757	$	166,289	$	(139,836	)	$	26,453

The aggregate amortization related to software included in our operations for 2021, 2020, and 2019 was as follows (in thousands):


	2021		2020		2019
Acquired software amortization (2)	$	2,405	$	1,853	$	2,229
Internal use software amortization (3)		13,316		13,216		10,641
Total software amortization	$	15,721	$	15,069	$	12,870

(2)

Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years. The amortization of acquired software is reflected as a cost of revenue in our Income Statements.

(3)

Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years.

The remaining weighted-average amortization period of the software intangible assets as of December 31, 2021 was approximately 37 months. Based on the net carrying value of these intangible assets, the estimated amortization for each of the five succeeding fiscal years ending December 31 will be: 2022 – $12.5 million; 2023 – $8.8 million; 2024 – $4.1 million; 2025 – $2.8 million; and 2026 – $1.6 million.

Customer Contract Costs. As of December 31, 2021 and 2020, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands):


	December 31, 2021							December 31, 2020
	Gross							Gross
	Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Amount		Amortization			Amount		Amount		Amortization			Amount
Customer contract incentives (4)	$	4,627	$	(3,007	)	$	1,620	$	4,626	$	(2,320	)	$	2,306
Capitalized costs (5)		63,323		(25,136	)		38,187		70,214		(33,104	)		37,110
Capitalized commission fees (6)		11,078		(4,267	)		6,811		12,291		(4,469	)		7,822
Total customer contract costs	$	79,028	$	(32,410	)	$	46,618	$	87,131	$	(39,893	)	$	47,238

During 2020, we recorded an impairment charge of $10.3 million for the write-off of capitalized customer contract costs related to a discontinued project implementation. This non-cash impairment charge is primarily included in cost of revenue in our Income Statement.

The aggregate amortization related to our customer contract costs included in our operations for 2021, 2020, and 2019 was as follows (in thousands):


	2021		2020		2019
Customer contract incentives amortization (4)	$	687	$	708	$	6,018
Capitalized costs amortization (5)		17,955		13,803		12,625
Capitalized commission fees amortization (6)		2,576		2,679		2,136
Total customer contract costs amortization	$	21,218	$	17,190	$	20,779

(4)

Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer’s account on, our outsourced solutions and are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2021, have termination dates that range from 2024 to 2026. The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements.

(5)

Capitalized costs are related to customer conversion/set-up activities and direct material costs to fulfill long-term revenue management platform and related solutions and managed services arrangements. These costs are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2021, range from 2022 to 2028, and are included in cost of revenue in our Income Statements.

(6)

Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2021, range from 2022 to 2027, and are included in selling, general and administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less.