XML 93 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

Note 3 - Goodwill and Other Intangible Assets

As of January 1, 2019, the Company realigned its management structure into Products, Research, and SiriusDecisions from our prior structure of Products, Research, and Project Consulting. The Company performed a qualitative assessment of goodwill for the Products and Research reporting units (as the Project Consulting reporting unit did not contain goodwill) as of January 1, 2019, which was based on the quantitative assessment that was performed as of November 30, 2018 and activity in December 2018. The Company concluded that no impairment existed at January 1, 2019 and goodwill was reassigned as of January 1, 2019 based on the relative fair values of the Products and Research reporting units. The goodwill related to the acquisition of SiriusDecisions was allocated to the SiriusDecisions segment, except for the portion of goodwill representing revenue synergies that are expected to benefit the Research segment.

A summary of goodwill by segment and the changes in the carrying amount of goodwill is shown in the following table (in thousands):

 

 

 

 

 

 

 

 

 

 

Sirius

 

 

 

 

 

 

Product

 

 

Research

 

 

Decisions

 

 

Total

 

Balance at January 1, 2018

$

2,438

 

 

$

73,731

 

 

$

 

 

$

76,169

 

Acquisitions

 

10,178

 

 

 

 

 

 

 

 

 

10,178

 

Translation adjustments

 

(98

)

 

 

(1,084

)

 

 

 

 

 

(1,182

)

Balance at December 31, 2018

 

12,518

 

 

 

72,647

 

 

 

 

 

 

85,165

 

Reassignment

 

(12,518

)

 

 

12,518

 

 

 

 

 

 

 

Acquisition

 

 

 

 

16,025

 

 

 

142,544

 

 

 

158,569

 

Translation adjustments

 

 

 

 

121

 

 

 

40

 

 

 

161

 

Balance at December 31, 2019

$

 

 

$

101,311

 

 

$

142,584

 

 

$

243,895

 

 

While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value the assets acquired and liabilities assumed on the acquisition date, its estimates and assumptions are subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill to reflect additional information received about facts and circumstances which existed at the date of acquisition. The Company records adjustments to the assets acquired and liabilities assumed subsequent to the purchase price allocation period in the Company’s operating results in the period in which the adjustments are determined. During the year-ended December 31, 2019, the Company recorded measurement period adjustments of $0.8 million primarily related to deferred taxes.  As of December 31, 2019, the measurement period was completed for the SiriusDecisions acquisition.

As of December 31, 2019, the Company had no accumulated goodwill impairment losses.

During the year ended December 31, 2019, $115.0 million of intangible assets were added as a result of the acquisition of SiriusDecisions. During the year ended December 31, 2018, $4.8 million and $0.6 million of intangible assets were added as a result of the acquisitions of FeedbackNow and GlimpzIt, respectively.

A summary of Forrester’s intangible assets is as follows (in thousands):

 

 

December 31, 2019

 

 

Gross

 

 

 

 

 

 

Net

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

Amount

 

 

Amortization

 

 

Amount

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

109,825

 

 

$

40,169

 

 

$

69,656

 

Technology

 

16,661

 

 

 

7,051

 

 

 

9,610

 

Backlog

 

13,000

 

 

 

6,500

 

 

 

6,500

 

Trademarks

 

12,451

 

 

 

854

 

 

 

11,597

 

Total

$

151,937

 

 

$

54,574

 

 

$

97,363

 

 

 

December 31, 2018

 

 

Gross

 

 

 

 

 

 

Net

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

Amount

 

 

Amortization

 

 

Amount

 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

32,823

 

 

$

31,604

 

 

$

1,219

 

Technology

 

3,610

 

 

 

295

 

 

 

3,315

 

Trademarks

 

443

 

 

 

26

 

 

 

417

 

Total

$

36,876

 

 

$

31,925

 

 

$

4,951

 

 

Amortization expense related to intangible assets was approximately $22.6 million, $1.2 million, and $0.8 million during the years ended December 31, 2019, 2018 and 2017, respectively. Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands):

 

2020

 

$

18,843

 

2021

 

 

12,343

 

2022

 

 

11,004

 

2023

 

 

10,830

 

2024

 

 

9,720

 

Thereafter

 

 

34,623

 

Total

 

$

97,363