Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 6. Goodwill and Other Intangible Assets

In accordance with the FASB issued guidance in the Intangibles-Goodwill and Other Topic of the Codification, we completed the required annual impairment test. We performed a qualitative and quantitative assessment on goodwill and determined it was not, more-likely-than-not, that the fair value of our reporting unit was less than its carrying value. There were no accumulated impairment losses of goodwill at the beginning of the period.

The following table presents the carrying amount of goodwill (in thousands):


	Goodwill
Balance at December 31, 2019	$	484,459
Acquisition	$	24,315
Other		(219	)
Balance at December 31, 2020	$	508,555
Acquisitions		68,395
Other		(37	)
Balance at December 31, 2021	$	576,913

The changes noted as “other” in the table above for both 2021 and 2020 refer to the amortization of the income tax benefit of tax goodwill in excess of financial statement goodwill.

The components of the “Other intangible assets” are as follows (in thousands):


						Net
	Gross		Accumulated			Carrying
	Amount		Amortization			Value		Life
As of December 31, 2021:
Customer relationships	$	226,623	$	(53,156	)	$	173,467	5-15 years

Carrier network and agent relationships	$	15,000	$	(1,063	)	$	13,937	4 years

Developed technology	$	6,500	$	(232	)	$	6,268	7 years

Trade name	$	5,500	$	(2,500	)	$	3,000	18 months

Total	$	253,623	$	(56,951	)	$	196,672


						Net
	Gross		Accumulated			Carrying
	Amount		Amortization			Value		Life
As of December 31, 2020:
Customer relationships	$	196,806	$	(36,765	)	$	160,041	5-15 years

Carrier network and agent relationships	$	2,432	$	(51	)	$	2,381	4 years

Trade name	$	2,921	$	(1,390	)	$	1,531	18 months

Total	$	202,159	$	(38,206	)	$	163,953

The above intangible assets are amortized using the straight-line method. Amortization expense was $18.7 million and $13.8 million for each of the years ended December 31, 2021 and 2020, respectively. The remaining weighted average life of all definite lived intangible assets was 10.30 years and 10.98 years for the years ended December 31, 2021 and 2020, respectively. Amortization expense for the next five years is as follows (in thousands):


	Total
Year 1	$	25,329
Year 2		23,284
Year 3		21,126
Year 4		20,089
Year 5		17,389