Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

8. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table sets forth the changes in the carrying amount of goodwill for the year ended 2021 and 2020:

(Amounts in thousands)	Total
Balance at December 31, 2019	$	56,387
2020 Acquisitions		8,511
Balance at December 31, 2020	$	64,898
2021 Acquisitions		35,478
Impairment		(62,385	)
Balance at December 31, 2021	$	37,991

The following table sets forth the gross carrying amounts and accumulated amortization of the Company’s intangible assets as of December 31, 2021 and 2020:

(Amounts in thousands)	Gross Carrying Amount		Impairment			Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets:
Trade names	$	5,973	$	—		$	(1,350	)	$	4,623
Licenses		350		—			(34	)		316
Technology		40,287		—			(10,811	)		29,476
Customer relationships		21,201		—			(5,485	)		15,716
Intellectual property		3,730		—			(673	)		3,057
Total definite-lived intangible assets at December 31, 2020	$	71,541	$	—		$	(18,353	)	$	53,188
Trade names	$	7,181	$	(4,915	)	$	(2,266	)	$	—
Licenses		350		(281	)		(69	)		—
Technology		46,359		(16,769	)		(17,799	)		11,791
Customer relationships		31,031		(21,705	)		(9,326	)		—
Intellectual property		4,135		—			(1,730	)		2,405
Capitalized Software		1,330		—			(66	)		1,264
Total definite-lived intangible assets at December 31, 2021	$	90,386	$	(43,670	)	$	(31,256	)	$	15,460

For the year ended December 31, 2021, the Company recorded an impairment charge for goodwill in the amount of $62.4 million and an impairment charge for intangibles in the amount of $43.7 million, specifically trade names, licenses, technology, and customer relationships, in the amounts of $4.9 million, $281 thousand, $16.8 million, and $21.7 million, respectively. The Company calculates the estimated fair value of a reporting unit using a weighting of the income and market approaches. For the income approach, the Company uses internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. For the market approach, the Company uses internal analyses based primarily on market comparables. The Company bases these assumptions on its historical data and experience, third party appraisals, industry projections, micro and macro general economic condition projections, and its expectations.

Amortization expense of intangible assets was $12.9 million and $11.4 million, respectively, for the years ended December 31, 2021 and 2020. The Company’s amortization is based on no residual value using the straight-line amortization method as it best represents the benefit of the intangible assets. The following table sets forth the weighted-average amortization period, in total and by major intangible asset class:

Asset Class	Weighted-Average Amortization period
Technology	1.8 years
Intellectual property	2.2 years
Software	5.0 years
All Intangible assets	2.1 years

As of December 31, 2021, assuming no additional amortizable intangible assets, the expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter was as follows:

(Amounts in thousands)	Estimated
2022		7,932
2023		6,574
2024		461
2025		247
2026		246
Total Intangible assets	$	15,460