Goodwill Notes (Notes)

3 Months Ended

Mar. 31, 2020

Goodwill Disclosure [Abstract]

Schedule of Goodwill

Goodwill

Changes in the carrying amount of goodwill for the three months ended March 31, 2020 and the year ended December 31, 2019 are reflected in the following table.

	March 31, 2020			December 31, 2019
	(Unaudited)
	(In thousands)
Beginning Balance	$	952,404		$	946,685
Additions	—			17,931
Purchase accounting adjustments	—			741
Foreign currency translation adjustments	(31,037		)	(12,953		)
Ending Balance	$	921,367		$	952,404

    At March 31, 2020, the Company concluded that a triggering event had occurred that would require Ebix to review its goodwill for impairment. The triggering event occurred both as a result of price volatility in Ebix common stock over the past few months, and also the pronounced volatility that occurred in the overall equity capital markets as a result of the COVID-19 global pandemic and the impact that had on the Company’s public valuation.

The Company undertook a qualitative assessment that also considered certain quantitative factors in evaluating any potential impairment of goodwill at March 31, 2020.  Qualitatively, the Company’s financial results in the recent past would not indicate a material change in the fair value of the net assets of the entity.  Similarly, the Company is not aware of any other qualitative factors, apart from the COVID-19 global pandemic, that would lead to a conclusion that impairment was more likely than not to have occurred as of March 31, 2020.  The Company also considered quantitative factors that include a discounted cash flow analysis, comparable public company valuations and precedent acquisition transactions.  Based on the factors considered above, the Company has concluded that at March 31, 2020 there was no goodwill impairment. 

Likewise, the Company also considered its indefinite-lived intangible assets in the above analysis and concluded there was no impairment at March 31, 2020. 

Given the uncertainty surrounding the COVID-19 global pandemic and the timing and magnitude of its negative impact on global economic conditions, the Company will continue to monitor the impact of COVID-19 on the overall operations of Ebix and any future impact on the fair value of the Company’s goodwill and indefinite-lived intangible assets.