GOODWILL AND ACQUIRED INTANGIBLES

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the six months ended June 30, 2022 are as follows (in thousands):


	Cardlytics Platform		Bridg Platform		Consolidated
Balance as of December 31, 2021	$	205,690	$	536,826	$	742,516
Goodwill additions due to acquisition of Entertainment	5,062		—		5,062
Measurement period adjustments	(61)		1,445		1,384
Goodwill impairments	—		(83,149)		(83,149)
Balance as of June 30, 2022	$	210,691	$	455,122	$	665,813

As a result of the sustained decline in our stock price during the three months ended June 30, 2022, we determined that it was necessary to perform an interim impairment test for goodwill as of June 30, 2022. The impairment test included determining whether the estimated fair value of each reporting unit exceeds its carrying value. If the carrying value exceeds the fair value of the reporting unit, the amount of impairment would equal the excess carrying value. As a result of our impairment test, we determined that the carrying value of the Bridg Platform reporting unit exceeded its fair value, and consequently, we recognized a goodwill impairment of $83.1 million.

The methods of determining fair value of the reporting units includes a combination between the income approach and the market approach. Key assumptions in applying the income approach includes determining appropriate revenue growth rates and margins, the timing of expected future cash flows and applying an appropriate discount rate that addresses the risk associated with the uncertainty of expected future cash flows. Key assumptions in applying the market approach includes determining appropriate guideline peer groups and public transaction revenue multiples. We believe that our procedures for determining fair value for each reporting unit are reasonable and consistent with current market conditions as of the testing date. However, markets are currently volatile and future developments are difficult to predict. If the markets that impact our business deteriorates, we could recognize further goodwill or other impairment charges.

Acquired intangible assets subject to amortization as of June 30, 2022 were as follows:


	Cost		Accumulated Amortization		Net		Weighted Average Remaining Useful Life
	(in thousands)						(in years)
Trade name	$	3,500	$	(1,349)	$	2,151	1.8
Developed technology	91,700		(18,733)		72,967		4.8
Merchant relationships	40,300		(9,102)		31,198		3.7
Partner relationships	2,000		(378)		1,622		5.7
Card-linked subscriber user base	17,000		(4,503)		12,497		3.7
Total other intangible assets	$	154,500	$	(34,065)	$	120,435

Amortization expense of acquired intangibles during the three and six months ended June 30, 2022 was $7.2 million and $14.4 million, respectively.

Acquired intangible assets subject to amortization as of December 31, 2021 were as follows:


	Cost		Accumulated Amortization		Net		Weighted Average Remaining Useful Life
	(in thousands)						(in years)
Trade name	$	2,700	$	(753)	$	1,947	2.1
Developed technology	91,000		(11,026)		79,974		5.3
Merchant relationships	32,000		(4,900)		27,100		4.2
Partner relationships	2,000		(235)		1,765		6.2
Card-linked subscriber user base	17,000		(2,798)		14,202		4.2
Total other intangible assets	$	144,700	$	(19,712)	$	124,988

As of June 30, 2022, we expect amortization expense in future periods to be as follows (in thousands):


	Amount
2022 (remainder of year)	$	14,379
2023	28,695
2024	27,976
2025	27,336
2026	17,596
Thereafter	4,453
Total expected future amortization expense	$	120,435