Note 5 - Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2022

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, 2022 were as follows:

(in thousands)	Nine Months Ended September 30, 2022
Balance as of the beginning of the period	$	400,610
Goodwill acquired during the period		-
Goodwill written off during the period		(630	)
Foreign currency translation adjustments		(16,422	)
Balance as of the end of the period	$	383,558

Goodwill of $0.6 million was written off as of  September 30, 2022, as a result of the Company's decision to close the Japan manufacturing facility and exit the Japan market. The Japan business was in operations through the third quarter of 2022 and the assets are expected to be available for sale in the fourth quarter of 2022. 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, 2022 and December 31, 2021 were as follows:

	September 30, 2022							December 31, 2021							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		$ (783)			$ 147		$ 930		$ (713)			$ 217	10.0	1.5
Non-compete agreement	807		(448		)	359		842		(363		)	479		2.0 - 5.0	2.3
Software technology	13,229		(6,041		)	7,188		13,229		(5,014		)	8,215		10.0	5.8
Software platform	25,071		(3,631		)	21,440		26,725		(2,262		)	24,463		12.0	10.3
Tradenames	337		(190		)	147		359		(114		)	245		3.0	1.3
Customer relationships	12,117		(9,491		)	2,626		12,252		(7,873		)	4,379		3.0 - 9.0	1.1
Total intangible assets	$	52,491	$	(20,584	)	$	31,907	$	54,337	$	(16,339	)	$	37,998

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 $2.8 million and $0.9 million as of September 30, 2022 and December 31, 2021, respectively. Amortization expense for intangible assets was $1.5 million and $1.6 million for the three months ended  September 30, 2022 and 2021, respectively, and $4.6 million in each of the nine months ended September 30, 2022 and 2021.

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 2022	$	1,491
2023		5,774
2024		3,647
2025		3,551
2026		3,453
Thereafter		13,991
Total estimated amortization expense	$	31,907