Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

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, 2020	$	508,555
Acquisition	$	68,395
Other		(37	)
Balance at December 31, 2021	$	576,913
Acquisitions		52,489
Balance at December 31, 2022	$	629,402

The change noted as “other” in the table above for 2021 refers 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, 2022:
Customer relationships	$	249,223	$	72,157	$	177,066	5-15 years
Carrier network and agent relationships	$	15,000	$	4,813	$	10,187	4 years
Developed technology	$	10,500	$	1,449	$	9,051	5-7 years
Trade name	$	6,200	$	5,118	$	1,082	18 months
Total	$	280,923	$	83,537	$	197,386

					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

The above intangible assets are amortized using the straight-line method. Amortization expense was $26.6 million and $18.7 million for the years ended December 31, 2022 and 2021, respectively. The remaining weighted average life of all definite lived intangible assets was 9.57 years and 10.30 years for the years ended December 31, 2022 and 2021, respectively. Amortization expense for the next five years is expected to be as follows (in thousands):

	Total
Year 1	$	26,810
Year 2		24,251
Year 3		23,149
Year 4		20,449
Year 5		20,160