Note 5 - Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 – Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill during the nine months ended September 30, 2021 were as follows:

(in thousands)	Nine Months Ended September 30, 2021
Balance as of the beginning of the period	$	128,752
Goodwill acquired during the period		281,845
Foreign currency translation adjustments		(6,357	)
Balance as of the end of the period	$	404,240

Goodwill increased $281.8 million during the nine months ended September 30, 2021 as a result of our acquisition of Hubs. Goodwill has been allocated to the acquired Hubs entities consisting of goodwill of €106.5 million in Europe and $152.2 million in the United States as of the date of the acquisition. The Euro denominated goodwill is translated at the end of each period using the current exchange rates resulting in a foreign currency translation adjustment that is recorded as a component of Other Comprehensive Income.

Intangible assets other than goodwill at  September 30, 2021 and December 31, 2020 were as follows:

	September 30, 2021							December 31, 2020							Useful	Weighted Average
(in thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net		Life (in years)	Useful Life Remaining (in years)
Intangible assets with finite lives:
Marketing assets	$930		$(690		)	$240		$930		$(620		)	$310		10.0	2.5
Non-compete agreement	847		(330		)	517		270		(238		)	32		2.0 - 5.0	3.1
Software technology	13,229		(4,672		)	8,557		13,229		(3,645		)	9,584		10.0	6.8
Software platform	26,933		(1,672		)	25,261		-		-			-		10.0	9.3
Tradenames	362		(84		)	278		-		-			-		3.0	2.3
Customer relationships	12,269		(7,306		)	4,963		10,070		(5,646		)	4,424		3.0 - 9.0	2.1
Total intangible assets	$	54,570	$	(14,754	)	$	39,816	$	24,499	$	(10,149	)	$	14,350

Intangible assets increased $30.8 million during the nine months ended September 30, 2021 as a result of our acquisition of Hubs. Intangible assets have been allocated to the acquired Hubs entities consisting of intangible assets of €11.6 million in Europe and $16.6 million in the United States as of the date of the acquisition. The Euro denominated intangible assets are translated at the end of each period using the current exchange rates resulting in a foreign currency translation adjustment that is recorded as a component of Other Comprehensive Income. Foreign currency losses related to intangible assets were $0.7 million as of September 30, 2021. There was no foreign currency translation impact as of December 31, 2020. Amortization expense for intangible assets was $1.6 million and $0.8 million for the three months ended  September 30, 2021 and 2020, respectively, and $4.6 million and $2.3 million for the nine months ended September 30, 2021 and 2020, respectively.

Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets and current exchange rates is as follows:

(in thousands)	Estimated Amortization Expense
Remaining 2021	$	1,555
2022		6,225
2023		6,022
2024		3,806
2025		3,725
Thereafter		18,483
Total estimated amortization expense	$	39,816