Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company transitioned to new segment reporting structure effective January 1, 2020, which resulted in certain changes to its operating segments and reporting units. The Company reallocated goodwill to its reporting units using a relative fair value approach. In addition, the Company completed an assessment of any potential goodwill impairment for all its reporting units immediately prior to the reallocation and determined that no impairment existed.

The following table sets forth details of changes in goodwill by reportable segment of the Company:


	Insurance		Healthcare		Emerging Business		TT&L		F&A		All Other		Analytics		Total
Balance at January 1, 2019	$	38,203	$	19,276	$	—	$	12,697	$	47,193	$	5,326	$	227,289	$	349,984
Currency translation adjustments	73		—		—		(240)		(288)		—		—		(455)
Balance at December 31, 2019	$	38,276	$	19,276	$	—	$	12,457	$	46,905	$	5,326	$	227,289	$	349,529
Goodwill reallocation⁽¹⁾	12,192		2,693		49,803		(12,457)		(46,905)		(5,326)		—		—
Currency translation adjustments	(303)		(38)		(1,076)		—		—		—		(2)		(1,419)
Balance at June 30, 2020	$	50,165	$	21,931	$	48,727	$	—	$	—	$	—	$	227,287	$	348,110

⁽¹⁾ Represents the reallocation of goodwill as a result of the Company reorganizing its operating segments as described in Note 3 - Segment and Geographical Information to the unaudited consolidated financial statements.

As of March 31, 2020, due to the deteriorating macroeconomic conditions arising from the COVID-19 pandemic, the Company performed a goodwill impairment test for its reporting units. The Company considered the effects of the COVID-19 pandemic on its significant inputs used in determining the fair value of the Company’s reporting units. Based on the results, the fair value of each of the Company’s reporting units exceeded their carrying value and the Company’s goodwill was not impaired.

During the second quarter of 2020, the Company evaluated the continuing effects of COVID-19 and its impact on the global economy on each of the Company’s reporting units to assess whether there was a triggering event during the quarter requiring the Company to perform a goodwill impairment test. The Company considered certain improvements in current and forecasted economic and market conditions and qualitative factors, such as, the Company’s performance and business forecasts, stock price movements and expansion plans. The Company reviewed key assumptions, including revisions of projected future revenues for reporting units against the results of the interim impairment quantitative test performed during the first quarter of 2020. The Company did not identify any triggers or indications of potential impairment for its reporting units as of June 30, 2020. The Company will continue to monitor the impacts of COVID-19 on the Company and significant changes in key assumptions that could result in future period impairment charges.

The recoverability of goodwill is dependent upon the continued growth of cash flows from our business activities. There can be no assurances that goodwill will not be impaired in future periods. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the judgments and estimates described above could change in future periods. The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on cash flows, long-term debt-free net cash flow growth rate in the terminal year and discount rates are subject to significant judgments and may cause variability in the Company’s assessment of existence of any impairment.

Intangible Assets

Information regarding the Company’s intangible assets is set forth below:


	As of June 30, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	73,160	$	(23,440)	$	49,720
Developed technology	23,348		(9,511)		13,837
Trade names and trademarks	5,100		(3,261)		1,839
	$	101,608	$	(36,212)	$	65,396
Indefinite-lived intangible assets:
Trade names and trademarks	900		—		900
Total intangible assets	$	102,508	$	(36,212)	$	66,296


	As of December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	97,602	$	(43,330)	$	54,272
Developed technology	26,976		(10,687)		16,289
Trade names and trademarks	5,100		(2,579)		2,521
	$	129,678	$	(56,596)	$	73,082
Indefinite-lived intangible assets:
Trade names and trademarks	900		—		900
Total intangible assets	$	130,578	$	(56,596)	$	73,982

The amortization expense for the period is as follows:


	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
Amortization expense	$	3,430	$	5,554	$	7,584	$	11,082

The remaining weighted average life of intangible assets is as follows:


			(in years)
Customer relationships			7.33
Developed technology			3.17
Trade names and trademarks (Finite lived)			2.09


Estimated future amortization expense related to intangible assets as of June 30, 2020 is as follows:
2020 (July 1 - December 31)	$	6,822
2021	12,730
2022	11,325
2023	9,036
2024	6,694
2025 and thereafter	18,789
Total	$	65,396