Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

4. Goodwill and Other Intangible Assets

Changes in the Company’s goodwill balance for the nine months ended September 30, 2019 are summarized in the table below (in thousands):


Balance at December 31, 2018	$	225,322
Acquired in business combinations	56,425

Adjustment related to prior year business combinations	2,899

Foreign currency translation adjustment	(1,813)
Balance at September 30, 2019	$	282,833

Net intangible assets include the estimated acquisition-date fair values of customer relationships, marketing-related assets, and developed technology that the Company recorded as part of its business acquisitions. The $2.9 million adjustment to Goodwill during the nine months ended September 30, 2019 is primarily related to changes in the ASC 805 valuation of intangible assets in the prior year business combination of Adestra.

The following is a summary of the Company’s intangible assets, net (in thousands):


	Estimated Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
September 30, 2019:
Customer relationships	1-10	$	216,595	$	46,278	$	170,317
Trade name	1.5-10	7,381		3,740		3,641
Developed technology	4-8	59,612		21,595		38,017
Non-compete agreements	3	1,148		478		670
Total intangible assets		$	284,736	$	72,091	$	212,645


	Estimated Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
December 31, 2018:
Customer relationships	1-10	$	173,592	$	30,650	$	142,942
Trade name	1.5-10	6,113		3,334		2,779
Developed technology	4-7	48,943		16,049		32,894
Non-compete agreements	3	1,148		191		957
Total intangible assets		$	229,796	$	50,224	$	179,572

The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in either a diminished fair value or revised useful life. There have been no indicators of impairment or change in useful life during the three and nine months ended September 30, 2019 and September 30, 2018, respectively. Total amortization expense during the three months ended September 30, 2019 and September 30, 2018 was $8.0 million and $4.8 million, respectively, and during the nine months ended September 30, 2019 and September 30, 2018 was $22.1 million and $12.9 million, respectively.

Estimated annual amortization expense for the next five years and thereafter is as follows (in thousands):


	Amortization Expense
Year ending December 31:
Remainder of 2019	$	8,277
2020	31,373
2021	29,850
2022	27,425
2023	25,390
2024 and thereafter	90,330
Total	$	212,645