Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets

Goodwill and Intangible Assets

(9) Goodwill and Intangible Assets

Intangible assets, net consist of the following:

	September 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	$	(206,615)	$	(5,685)	$	(33,023)	$	52,390
Marketing alliance agreements		197,412		(93,430)		(7,557)		(24,513)		71,912
Internally developed and acquired software		131,347		(63,824)		(9,324)		(6,767)		51,432
Trademarks, definite-lived		20,851		(14,197)		-		(3,946)		2,708
Non-compete agreements		150		(56)		-		(30)		64
Total	$	647,473	$	(378,122)	$	(22,566)	$	(68,279)	$	178,506
	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 $13.5 million and $12.4 million for the three months ended September 30, 2022 and 2021, respectively. Amortization expense related to intangible assets was $36.3 million and $34.1 million for the nine months ended September 30, 2022 and 2021, respectively.

As of September 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.

Due to the Liberbank marketing alliance agreement termination, amortization of the respective intangible asset of $2.5 million was accelerated and as a result, its net book value was zero as of September 30, 2022.

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

	(In thousands)
Years ending:
2022 (remainder of the year)	$	11,734
2023		40,523
2024		30,665
2025		23,535
2026		16,741
2027 and thereafter		55,308
Total	$	178,506

For each of the three and nine months ended September 30, 2022 and 2021, there were no impairments.

The following represents intangible assets, net by segment:

	September 30,		December 31,
	2022		2021
	(In thousands)
Intangible assets, net:
Americas
Merchant contract portfolios and customer relationships	$	42,906	$	49,435
Marketing alliance agreements		51,840		56,996
Internally developed and acquired software		39,881		28,812
Trademarks, definite-lived		1,316		1,497
Non-compete agreements		64		104
Total		136,007		136,844
Europe
Merchant contract portfolios and customer relationships		9,484		14,036
Marketing alliance agreements		20,072		32,152
Internally developed and acquired software		11,551		15,047
Trademarks, definite-lived		1,392		2,647
Total		42,499		63,882
Total intangible assets, net	$	178,506	$	200,726

The change in the carrying amount of goodwill for the nine months ended September 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		(3,573)		(18,297)		(21,870)
Goodwill, net, as of September 30, 2022	$	278,147	$	92,424	$	370,571