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GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill and intangible assets, net are as follows:
 
March 31,
 
December 31,
 
2020
 
2019
 
(In thousands)
Goodwill
$
3,042,139

 
$
2,854,462

Intangible assets with indefinite lives
473,208

 
446,495

Intangible assets with definite lives, net of accumulated amortization
198,259

 
131,979

Total goodwill and intangible assets, net
$
3,713,606

 
$
3,432,936


The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended March 31, 2020:
 
Balance at
December 31, 2019
 
Additions
 
(Deductions)
 
Impairment
 
Foreign
Exchange
Translation
 
Balance at
March 31, 2020
 
(In thousands)
Match Group
$
1,239,840

 
$
—

 
$
—

 
$
—

 
$
(12,108
)
 
$
1,227,732

ANGI Homeservices
882,051

 
—

 
—

 
—

 
(4,867
)
 
877,184

Vimeo
219,374

 
—

 
(38
)
 
—

 
—

 
219,336

Applications:
 
 
 
 
 
 
 
 
 
 
 
     Desktop
265,146

 
—

 
—

 
(211,973
)
 
—

 
53,173

     Mosaic Group
239,602

 
—

 
—

 
—

 
(134
)
 
239,468

Total Applications
504,748

 
—

 
—

 
(211,973
)
 
(134
)
 
292,641

Emerging & Other
8,449

 
416,797

 
—

 
—

 
—

 
425,246

Total
$
2,854,462

 
$
416,797

 
$
(38
)
 
$
(211,973
)
 
$
(17,109
)
 
$
3,042,139


Additions are related to the acquisition of Care.com (included in Emerging & Other Segment).
In connection with the first quarter close of its books, the Company determined that the effects of COVID-19 were an indicator of possible impairment for certain of its reporting units and indefinite-lived intangible assets. The Company
determined the fair value of these reporting units and indefinite-lived intangible assets as of March 31, 2020 and identified the following impairments:
•
a $212.0 million impairment related to the goodwill of the Desktop reporting unit;
•
a $21.4 million impairment related to certain indefinite-lived intangible assets of the Desktop reporting unit; and
•
a $4.6 million impairment related to certain indefinite-lived intangible assets of the Match Group reporting unit.
In addition, the updated valuation of the Mosaic Group reporting unit indicates that the fair value of this reporting unit approximates its carrying value. The goodwill of the Desktop and Mosaic Group reporting units is $53.2 million and $239.5 million, respectively, as of March 31, 2020. To the extent there is a decline in the fair value of these reporting units, a goodwill impairment would be recorded to the extent the carrying value exceeds the fair value.
The fair value of the Desktop and Mosaic Group reporting units was determined using both an income approach based on discounted cash flows ("DCF") and a market approach. Determining fair value using a DCF analysis requires the exercise of significant judgment with respect to several items, including the amount and timing of expected future cash flows and appropriate discount rates. The expected cash flows used in the DCF analyses were based on the most recent forecasts for Desktop and Mosaic Group for 2020 and each of the years in the forecast period, which were updated in light of COVID-19. For years beyond the forecast period, Desktop and Mosaic Group estimates were based, in part, on forecasted growth rates. The discount rates used in the DCF analyses were intended to reflect the risks inherent in the expected future cash flows of the Desktop and Mosaic Group reporting units. The discount rate used for determining the fair value of both the Desktop and Mosaic Group reporting units was 15.0%. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple is determined, which is applied to financial metrics to estimate the fair value of the Desktop and Mosaic Group reporting units. To determine a peer group of companies for Desktop and Mosaic Group, the Company considered companies relevant in terms of consumer use, monetization model, margin and growth characteristics, and brand strength operating in their respective sectors. The aggregate carrying value of goodwill for which the most recent estimate of the excess of fair value over carrying value is less than 20% is approximately $709.4 million.
The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended December 31, 2019:
 
Balance at
December 31, 2018
 
Additions
 
(Deductions)
 
Impairment
 
Foreign
Exchange
Translation
 
Balance at
December 31, 2019
 
(In thousands)
Match Group
$
1,245,013

 
$
3,553

 
$
—

 
$
—

 
$
(8,726
)
 
$
1,239,840

ANGI Homeservices
892,800

 
18,326

 
(29,267
)
 
—

 
192

 
882,051

Vimeo
77,152

 
142,222

 
—

 
—

 
—

 
219,374

Applications:
 
 
 
 
 
 
 
 
 
 
 
     Desktop
265,146

 
—

 
—

 
—

 
—

 
265,146

     Mosaic Group
239,746

 
—

 
—

 
—

 
(144
)
 
239,602

Total Applications
504,892

 
—

 
—

 
—

 
(144
)
 
504,748

Emerging & Other
7,002

 
4,765

 
—

 
(3,318
)
 
—

 
8,449

Total
$
2,726,859

 
$
168,866

 
$
(29,267
)
 
$
(3,318
)
 
$
(8,678
)
 
$
2,854,462


Additions primarily relate to the acquisitions of Magisto (included in the Vimeo segment) and Fixd Repair (included in the ANGI Homeservices segment). Deductions primarily relate to tax benefits of acquired attributes related to the acquisition of Handy (included in the ANGI Homeservices segment). During the fourth quarter of 2019, the Company recorded an impairment charge of $3.3 million related to the goodwill of the College Humor Media business (included in the Emerging & Other Segment).
The March 31, 2020 and December 31, 2019 goodwill balances reflect accumulated impairment losses of $741.1 million and $529.1 million, respectively, at Applications. The March 31, 2020 and December 31, 2019 goodwill balances also reflect accumulated impairment losses of $399.7 million, $198.3 million, and $14.9 million at the businesses previously included in
the IAC Publishing segment (excluding Dotdash, included in the Emerging & Other segment), Dotdash and College Humor Media (included in the Emerging & Other segment), respectively.
As described above, since the effects of COVID-19 were an indicator of impairment, the Company updated its calculations of the fair value of its indefinite-lived intangible assets as of March 31, 2020. The Company recorded impairment charges of $21.4 million and $4.6 million at Desktop and MTCH, respectively, related to indefinite-lived trade names. The impairment of indefinite-lived intangible assets is included in “Amortization of intangibles” in the accompanying consolidated statement of operations. The Company determines the fair value of indefinite-lived intangible assets using an avoided royalty DCF valuation analysis. Significant judgments inherent in this analysis include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses were intended to reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the DCF analyses were based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. The discount rates used to value the trade names, including those that were impaired, in the first quarter of 2020 ranged from 10.5% to 15.0% and the royalty rates used ranged from 1.0% to 6.0%. The aggregate carrying value of indefinite-lived intangible assets for which the most recent estimate of the excess of fair value over carrying value is less than 20% is approximately $162.5 million.
At March 31, 2020 and December 31, 2019, intangible assets with definite lives are as follows:
 
March 31, 2020
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Weighted-Average
Useful Life
(Years)
 
(In thousands)
 
 
Technology
$
203,737

 
$
(87,442
)
 
$
116,295

 
4.7
Service professional relationships
99,850

 
(83,560
)
 
16,290

 
3.0
Customer lists and user base
79,768

 
(26,804
)
 
52,964

 
4.0
Trade names
21,868

 
(15,544
)
 
6,324

 
2.7
Memberships
15,900

 
(13,264
)
 
2,636

 
3.0
Other
14,703

 
(10,953
)
 
3,750

 
3.7
Total
$
435,826

 
$
(237,567
)
 
$
198,259

 
4.0

 
December 31, 2019
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Weighted-Average
Useful Life
(Years)
 
(In thousands)
 
 
Technology
$
154,052

 
$
(79,358
)
 
$
74,694

 
4.6
Service professional relationships
99,651

 
(76,445
)
 
23,206

 
2.9
Customer lists and user base
44,548

 
(24,488
)
 
20,060

 
3.3
Trade names
19,074

 
(13,068
)
 
6,006

 
3.2
Memberships
15,900

 
(11,940
)
 
3,960

 
3.0
Other
13,952

 
(9,899
)
 
4,053

 
3.7
Total
$
347,177

 
$
(215,198
)
 
$
131,979

 
3.8

At March 31, 2020, amortization of intangible assets with definite lives is estimated to be as follows:
 
(In thousands)
Remainder of 2020
$
60,498

2021
45,014

2022
39,859

2023
30,119

2024
15,841

Thereafter
6,928

Total
$
198,259