Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets

Goodwill and Intangible Assets

(9) Goodwill and Intangible Assets

Intangible assets, net consist of the following:

	June 30, 2022
	Gross carrying value		Accumulated amortization		Accumulated impairment charges		Translation and other adjustments		Net
	(In thousands)
Merchant contract portfolios and customer relationships	$	297,713	$	(203,507)	$	(5,685)	$	(31,832)	$	56,689
Marketing alliance agreements		197,412		(87,823)		(7,557)		(23,028)		79,004
Internally developed and acquired software		128,690		(59,411)		(9,324)		(5,144)		54,811
Trademarks, definite-lived		20,851		(13,863)		-		(3,807)		3,181
Non-compete agreements		150		(47)		-		(27)		76
Total	$	644,816	$	(364,651)	$	(22,566)	$	(63,838)	$	193,761
	December 31, 2021
	Gross carrying value		Accumulated amortization		Accumulated impairment charges		Translation and other adjustments		Net
	(In thousands)
Merchant contract portfolios and customer relationships	$	297,056	$	(197,187)	$	(5,685)	$	(30,713)	$	63,471
Marketing alliance agreements		197,412		(79,811)		(7,557)		(20,896)		89,148
Internally developed and acquired software		110,396		(53,110)		(10,191)		(3,236)		43,859
Trademarks, definite-lived		22,068		(13,427)		(901)		(3,596)		4,144
Non-compete agreements		6,612		(6,487)		-		(21)		104
Total	$	633,544	$	(350,022)	$	(24,334)	$	(58,462)	$	200,726

Amortization expense related to intangible assets was $10.7 million and $10.8 million for the three months ended June 30, 2022 and 2021, respectively. Amortization expense related to intangible assets was $22.8 million and $21.7 million for the six months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022, the gross carrying value of non-compete agreements, internally developed software, and definite-lived trademarks were reduced by $6.5 million, $2.2 million, and $1.2 million, respectively, with an offset to accumulated amortization, accumulated impairment charges, and translation and other adjustments, for fully amortized or previously impaired intangible assets.

Estimated amortization expense to be recognized during each of the five years subsequent to June 30, 2022:

	(In thousands)
Years ending:
2022 (remainder of the year)	$	23,477
2023		41,184
2024		30,902
2025		23,112
2026		17,330
2027 and thereafter		57,756
Total	$	193,761

There were no impairments of intangible assets for the three and six months ended June 30, 2022 and 2021.

The following represents intangible assets, net by segment:

	June 30,		December 31,
	2022		2021
	(In thousands)
Intangible assets, net:
Americas
Merchant contract portfolios and customer relationships	$	45,578	$	49,435
Marketing alliance agreements		53,111		56,996
Internally developed and acquired software		41,624		28,812
Trademarks, definite-lived		1,367		1,497
Non-compete agreements		76		104
Total		141,756		136,844
Europe
Merchant contract portfolios and customer relationships		11,111		14,036
Marketing alliance agreements		25,893		32,152
Internally developed and acquired software		13,187		15,047
Trademarks, definite-lived		1,814		2,647
Total		52,005		63,882
Total intangible assets, net	$	193,761	$	200,726

The change in the carrying amount of goodwill for the six months ended June 30, 2022, in total and by reportable segment, is as follows:

	Reportable Segment
	Americas		Europe		Total
	(In thousands)
Goodwill, gross, as of December 31, 2021	$	274,930	$	135,012	$	409,942
Accumulated impairment losses		—		(24,291)		(24,291)
Goodwill, net, as of December 31, 2021		274,930		110,721		385,651
Business combinations		6,790		—		6,790
Foreign currency translation adjustment		(872)		(10,383)		(11,255)
Goodwill, net, as of June 30, 2022	$	280,848	$	100,338	$	381,186