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Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

NOTE 6 - GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The changes in the carrying amount of goodwill for the fiscal years ended December 31 were as follows:

 

 

 

2021

 

 

2020

 

Balance as of January 1

 

$

909,913

 

 

$

719,934

 

Goodwill resulting from business combination - ITG

 

 

 

 

 

188,253

 

Goodwill resulting from business combination - ESAC

 

 

11,226

 

 

 

 

Goodwill resulting from business combination - Creative Systems and Consulting

 

 

126,118

 

 

 

 

Effect of foreign currency translation

 

 

(497

)

 

 

1,726

 

Balance as of December 31

 

$

1,046,760

 

 

$

909,913

 

 

Other Intangible Assets

Intangible assets with definite lives are primarily amortized over periods ranging from approximately 1 to 10 years. The weighted-average period of amortization for all intangible assets, calculated as of December 31, 2021, is 7.7 years. The customer-related intangible assets, which consist of customer contracts, backlog, and non-contractual customer relationships, are being amortized based on estimated cash flows and respective estimated economic benefit of the assets. The weighted-average period of amortization of the customer-related intangibles calculated as of December 31, 2021 is 7.7 years. Intangible assets related to developed technology are being amortized on an accelerated basis over a weighted-average period, calculated as of December 31, 2021, of 7.7 years. Intangible assets with an indefinite life consist of a domain name.

Other intangibles consisted of the following at December 31:    

 

 

 

2021

 

 

 

Gross

Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

Customer-related

 

$

167,577

 

 

$

(92,494

)

 

$

75,083

 

Developed technology

 

 

5,411

 

 

 

(944

)

 

 

4,467

 

Total amortizable intangible assets

 

 

172,988

 

 

 

(93,438

)

 

 

79,550

 

Intangible with indefinite life

 

 

95

 

 

 

 

 

 

95

 

Total other intangible assets

 

$

173,083

 

 

$

(93,438

)

 

$

79,645

 

 

 

 

2020

 

 

 

Gross

Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

Customer-related

 

$

142,849

 

 

$

(83,137

)

 

$

59,712

 

Developed technology

 

 

733

 

 

 

(653

)

 

 

80

 

Total amortizable intangible assets

 

 

143,582

 

 

 

(83,790

)

 

 

59,792

 

Intangible with indefinite life

 

 

95

 

 

 

 

 

 

95

 

Total other intangible assets

 

$

143,677

 

 

$

(83,790

)

 

$

59,887

 

 

Aggregate amortization expense for the years ended December 31, 2021, 2020, and 2019, was approximately $12.5 million, $13.3 million, and $8.1 million, respectively. The Company recognized impairment expense, included in indirect and selling expense, of $1.7 million in the second quarter of 2019 related to the intangible asset associated with a historical business acquisition. The estimated future amortization expense relating to intangible assets is as follows: 

 

Year ending December 31,

 

 

 

 

2022

 

$

19,920

 

2023

 

 

18,864

 

2024

 

 

18,211

 

2025

 

 

13,393

 

2026

 

 

7,207

 

Thereafter

 

 

1,955

 

Total

 

$

79,550