Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets

Goodwill and Intangible Assets

(9) Goodwill and Intangible Assets

Intangible assets, net consist of the following:

	March 31, 2020
	Gross carrying value		Accumulated amortization		Accumulated impairment charges		Translation and other adjustments		Net
	(In thousands)
Merchant contract portfolios and customer relationships	$	293,581	$	(167,117)	$	(5,686)	$	(37,152)	$	83,626
Marketing alliance agreements		186,081		(61,026)		(7,557)		(28,066)		89,432
Trademarks, definite-lived		21,628		(9,608)		(118)		(3,852)		8,050
Internally developed and acquired software		85,762		(29,001)		(10,190)		(4,000)		42,571
Non-compete agreements		6,462		(6,093)		-		-		369
Total	$	593,514	$	(272,845)	$	(23,551)	$	(73,070)	$	224,048
	December 31, 2019
	Gross carrying value		Accumulated amortization		Accumulated impairment charges		Translation and other adjustments		Net
	(In thousands)
Merchant contract portfolios and customer relationships	$	296,033	$	(163,358)	$	(7,089)	$	(26,347)	$	99,239
Marketing alliance agreements		191,879		(59,545)		(11,920)		(17,468)		102,946
Trademarks, definite-lived		29,493		(13,129)		(2,631)		(4,600)		9,133
Internally developed and acquired software		84,060		(26,042)		(10,190)		(2,110)		45,718
Non-compete agreements		6,462		(5,938)		-		-		524
Trademarks, indefinite-lived		18,499		-		(18,499)		-		-
Total	$	626,426	$	(268,012)	$	(50,329)	$	(50,525)	$	257,560

As of March 31, 2020, the gross carrying value of merchant contract portfolios and customer relationships, marketing alliance agreements, and definite and indefinite-lived trademarks were reduced by $2.4 million, $5.8 million, $7.9 million, and $18.5 million, respectively, with an offset to accumulated amortization, accumulated impairment charges, and translation and other adjustments, for the write off of fully impaired intangible assets.

Amortization expense related to intangible assets was $11.3 million and $12.4 million for the three months ended March 31, 2020 and 2019, respectively.

Estimated amortization expense to be recognized during each of the five years subsequent to March 31, 2020:

	(In thousands)
Years ending:
2020 (remainder of the year)	$	33,216
2021		39,196
2022		32,874
2023		24,678
2024		15,691
2025 and thereafter		78,393
Total	$	224,048

The following represents net intangible assets by segment:

	March 31,		December 31,
	2020		2019
	(In thousands)
Intangible assets, net:
Americas
Merchant contract portfolios and customer relationships	$	62,257	$	74,791
Marketing alliance agreements		61,469		72,272
Trademarks, definite-lived		2,722		2,994
Internally developed and acquired software		26,291		28,697
Non-compete agreements		339		489
Total		153,078		179,243
Europe
Merchant contract portfolios and customer relationships		21,369		24,448
Marketing alliance agreements		27,963		30,674
Trademarks, definite-lived		5,328		6,139
Internally developed and acquired software		16,280		17,021
Non-compete agreements		30		35
Total		70,970		78,317
Total intangible assets, net	$	224,048	$	257,560

Goodwill activity for the three months ended March 31, 2020, in total and by reportable segment, was as follows:

	Reportable Segment
	Americas		Europe		Total
	(In thousands)
Goodwill, gross, as of December 31, 2019	$	268,049	$	135,080	$	403,129
Accumulated impairment losses		—		(24,291)		(24,291)
Goodwill, net, as of December 31, 2019		268,049		110,789		378,838
Foreign currency translation adjustment		(10,810)		(6,926)		(17,736)
Goodwill, net, as of March 31, 2020	$	257,239	$	103,863	$	361,102