XML 78 R34.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amount of Goodwill The following table presents the changes in the carrying amount of goodwill:
(in thousands)
2019
 
2018
January 1,
$
72,858

 
$
72,952

Acquisition (1)
6,179

 
—

Currency translation adjustments
2

 
(94
)
December 31,
$
79,039

 
$
72,858


(1) In May 2019, the Company acquired In the Chat Communications Inc., a privately-held software provider of digital customer service software, for $10.9 million, net of cash acquired. The Company also expects to issue up to approximately 15 thousand shares in retention-based bonus payments to a key employee upon the achievement of specified retention milestones. The principal assets and liabilities acquired as part of the business combination were additional goodwill and technology intangible assets of $6.2 million and $5.1 million.
Schedule of Amortizable Intangible Assets
Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives as follows:
 
 
 
December 31, 2019
(in thousands)
Useful Lives
 
Cost
 
Accumulated
Amortization
 
Net Book Value (1)
Client-related
4-10 years
 
$
63,140

 
$
(54,368
)
 
$
8,772

Technology
2-10 years
 
64,843

 
(53,898
)
 
10,945

Other
1-5 years
 
5,361

 
(5,361
)
 
—

 
 
 
$
133,344

 
$
(113,627
)
 
$
19,717

(1) Included in other long-term assets.
 
 
 
December 31, 2018
(in thousands)
Useful Lives
 
Cost
 
Accumulated Amortization
 
Net Book Value (1)
Client-related
4-10 years
 
$
63,115

 
$
(51,224
)
 
$
11,891

Technology
2-10 years
 
59,742

 
(50,398
)
 
9,344

Other
1 - 5 years
 
5,361

 
(5,361
)
 
—

 
 
 
$
128,218

 
$
(106,983
)
 
$
21,235

(1) Included in other long-term assets.
Amortization Expense of Acquired Intangibles
Amortization of intangible assets was:
(in thousands)
2019
 
2018
 
2017
Cost of revenue
$
3,500

 
$
5,027

 
$
5,103

Selling and marketing
3,125

 
6,416

 
7,235


$
6,625

 
$
11,443

 
$
12,338
Estimated Future Amortization Expense Related to Intangible Assets
Future estimated amortization expense related to intangible assets:
(in thousands)
December 31, 2019
2020
$
3,975

2021
3,651

2022
3,557

2023
3,289

2024 and thereafter
5,245

 
$
19,717