Note 6 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6 – Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021 were as follows:

(in thousands)	Dec. 31, 2020		Goodwill acquired during 2021		Foreign currency translation adjustments during 2021			Dec. 31, 2021		Goodwill acquired (impaired) during 2022			Foreign currency translation adjustments during 2022			Dec. 31, 2022
United States	$	123,883	$	150,108	$	-		$	273,991	$	-		$	-		$	273,991
Europe		4,239		130,817		(9,067	)		125,989		(118,008	)		(7,981	)		-
Japan		630		-		-			630		(630	)		-			-
Total goodwill	$	128,752	$	280,925	$	(9,067	)	$	400,610	$	(118,638	)	$	(7,981	)	$	273,991

Goodwill decreased $126.6 million for the year ended December 31, 2022 as a result of impairments related to our Europe and Japan reporting units. Goodwill increased $280.9 million for the year ended December 31, 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 $150.1 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 for the years ended December 31, 2022 and 2021 were as follows: 

	Year Ended December 31, 2022							Year Ended December 31, 2021								Weighted Average Useful Life
(in thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net		Useful Life (in years)	Remaining (in years)
Marketing assets	$930		$(806		)	$124		$930		$(713		)	$217		10.0	1.3
Non-compete agreement	828		(487		)	$341		842		(363		)	479		2.0 - 5.0	2.1
Software technology	13,229		(6,383		)	$6,846		13,229		(5,014		)	8,215		10.0	5.5
Software platform	26,054		(4,337		)	$21,717		26,725		(2,262		)	24,463		12.0	10.1
Tradenames	350		(227		)	$123		359		(114		)	245		3.0	1.1
Customer relationships	12,197		(10,098		)	$2,099		12,252		(7,873		)	4,379		3.0 - 9.0	0.8
Total intangible assets	$	53,588	$	(22,338	)	$	31,250	$	54,337	$	(16,339	)	$	37,998

Amortization expense for intangible assets for the years ended December 31, 2022, 2021 and 2020 was $6.0 million, $6.2 million and $3.0 million, respectively. 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. For the years ended December 31, 2022 and 2021, the foreign currency translation adjustment was $1.7 million and $0.9 million, respectively.  There were no foreign currency translation adjustment for the year ended December 31, 2020.

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

(in thousands)	Estimated Amortization Expense
2023	$	5,884
2024		3,732
2025		3,634
2026		3,532
2027		3,523
Thereafter		10,945
Total estimated amortization expense	$	31,250