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Note 6 - Goodwill and Other Acquired Intangible Assets, Net
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net Goodwill and Other Acquired Intangible Assets, Net
All of our goodwill and other acquired intangible assets relate to our Real Estate segment.
The following table shows the changes in the carrying amount of goodwill for the year-to-date periods ended December 31, 2019 and March 31, 2020:
(In thousands)
Goodwill
 
Accumulated Impairment Losses
 
Net
Balance at December 31, 2018
$
200,561

 
$
(186,469
)
 
$
14,092

Goodwill acquired
538

 
—

 
538

Impairment losses
—

 
(4,828
)
 
(4,828
)
Balance at December 31, 2019
201,099

 
(191,297
)
 
9,802

Goodwill acquired
—

 
—

 
—

Impairment losses
—

 
—

 
—

Balance at March 31, 2020
$
201,099

 
$
(191,297
)
 
$
9,802


The following is a summary of the gross and net carrying amounts and accumulated amortization (including impairment) of our other acquired intangible assets as of the periods indicated:
 
March 31, 2020
(In thousands)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Client relationships
$
43,550

 
$
(28,095
)
 
$
15,455

Technology
8,285

 
(6,761
)
 
1,524

Trade name and trademarks
480

 
(423
)
 
57

Licenses
463

 
(93
)
 
370

Total
$
52,778

 
$
(35,372
)
 
$
17,406


 
December 31, 2019
(In thousands)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Client relationships
$
43,550

 
$
(27,269
)
 
$
16,281

Technology
8,435

 
(6,789
)
 
1,646

Trade name and trademarks
480

 
(404
)
 
76

Licenses
463

 
(81
)
 
382

Total
$
52,928

 
$
(34,543
)
 
$
18,385


Interim Impairment Analysis
Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, if certain events and circumstances indicate potential impairment. We generally perform our annual goodwill impairment test during the fourth quarter of each year, using balances as of the prior quarter. Events and circumstances that could result in an interim assessment of goodwill and other acquired intangible assets and/or a potential impairment loss include, but are not limited to: (i) significant under-performance of the Real Estate segment relative to historical or projected future operating results; (ii) significant changes in the strategy for the Real Estate segment; (iii) significant negative industry or economic trends; and (iv) a decline in market capitalization below the book value attributable to the Real Estate segment.
Due to the rapidly changing social and economic impacts associated with the COVID-19 pandemic on the U.S. and global economies generally, and in particular on the U.S. housing, real estate and housing finance markets during the first quarter of 2020, we opted to perform an interim quantitative impairment assessment of our goodwill and other acquired intangible assets.
We first evaluated the recoverability of our other acquired intangible assets, as factors affecting the estimated fair value of our goodwill also affect the estimated recoverability of our other acquired intangible assets. Based on our analysis in the first quarter of 2020, no impairment was indicated for other acquired intangible assets, as the remaining carrying amounts were estimated to be recoverable despite the recent market disruptions associated with the COVID-19 pandemic.
The value of our goodwill and other acquired intangible assets is supported by cash flow projections, which are primarily driven by projected transaction volume and margins. Lower earnings over sustained periods can lead to impairment of goodwill, which could result in a charge to earnings. Given that our goodwill and other acquired intangible assets analysis continues to rely on achieving our projected future cash flows, failure to meet those projections may result in impairment in a future period.
Our assumptions related to projected cash flows did not significantly change as a result of the observed market conditions. Based on our quantitative goodwill impairment assessment as of March 31, 2020, we concluded that no impairment of goodwill is indicated.
For additional information on our accounting policies for goodwill and other acquired intangible assets, see Notes 2 and 7 of Notes to Consolidated Financial Statements in our 2019 Form 10-K.