GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

As of September 30, 2022 and December 31, 2021, goodwill and other intangible assets consisted of the following:


	September 30, 2022		December 31, 2021

	(in thousands)

Goodwill	$	23,421,031	$	24,813,274
Other intangible assets:
Customer-related intangible assets	$	9,556,652	$	9,694,083
Acquired technologies	2,849,693		2,962,154
Contract-based intangible assets	1,721,068		2,258,676
Trademarks and trade names	1,065,997		1,271,302
	15,193,410		16,186,215
Less accumulated amortization:
Customer-related intangible assets	3,038,478		2,587,586
Acquired technologies	1,604,058		1,367,513
Contract-based intangible assets	179,575		180,975
Trademarks and trade names	463,415		416,432
	5,285,526		4,552,506
	$	9,907,884	$	11,633,709

As of September 30, 2022, approximately $651.2 million of intangible assets have been reclassified to assets held for sale in connection with the presentation of the consumer business as held for sale. See “Note 3—Business Dispositions” for further discussion.

The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the nine months ended September 30, 2022 and has been recast to align with the change in the presentation of segment information as further described in “Note 14-Segment Information:”


	Merchant Solutions		Issuer Solutions		Consumer Solutions		Total

	(in thousands)
Balance at December 31, 2021	$	14,063,682	$	9,908,014	$	841,578	$	24,813,274
Effect of foreign currency translation	(124,632)		(50,761)		—		(175,393)
Goodwill acquired	7,918		—		—		7,918
Goodwill derecognized in connection with the sale of a business (1)	(17,719)		—		—		(17,719)
Impairment of goodwill	—		—		(833,075)		(833,075)
Reallocation of accumulated impairment losses due to change in reporting units	—		(357,933)		357,933		—
Reclassification of goodwill to assets held for sale (2)	—		—		(366,436)		(366,436)
Measurement period adjustments	(2,957)		(4,581)		—		(7,538)
Balance at September 30, 2022	$	13,926,292	$	9,494,739	$	—	$	23,421,031

(1) Reflects goodwill derecognized in connection with the sale of our Merchant Solutions business in Russia. See “Note 3—Business Dispositions” for further discussion.

(2) Reflects the reclassification of goodwill in connection with the presentation of the consumer business as held for sale. See “Note 3—Business Dispositions” for further discussion.

We test goodwill for impairment at the reporting unit level annually and more often if an event occurs or circumstances change that indicate the fair value of a reporting unit may be below its carrying amount. When applying the quantitative assessment, we determine the fair value of our reporting units based on a weighted average of multiple valuation techniques, principally a combination of an income approach and a market approach. The income approach calculates a value based upon the present value of estimated future cash flows, while the market approach uses earnings multiples of similarly situated guideline public companies. Determining the fair value of a reporting unit involves judgment and the use of significant estimates and assumptions, which include assumptions regarding the revenue growth rates and operating margins used to calculate estimated future cash flows, risk-adjusted discount rates and future economic and market conditions.

The sustained decline in our share price and increases in discount rates, primarily resulting from increased economic uncertainty, indicated a potential decline in fair value and triggered a requirement to evaluate our Issuer Solutions and former Business and Consumer Solutions reporting units for potential impairment as of June 30, 2022. Further, the estimated sales price for the consumer business also indicated a potential decline in fair value of our former Business and Consumer Solutions reporting unit as of June 30, 2022. We determined on the basis of the quantitative assessment that the fair value of the Issuer Solutions reporting unit was still greater than its carrying amount as of June 30, 2022, indicating no impairment. Based on the quantitative assessment of our former Business and Consumer Solutions reporting unit, including consideration of the consumer business disposal group and the remaining assets of the reporting unit, we recognized a goodwill impairment charge of $833.1 million in our consolidated statement of income during the three months ended June 30, 2022. In connection with the change in presentation of segment information during the third quarter of 2022 as further described in “Note 14-Segment Information,” accumulated impairment losses associated with our former Business and Consumer Solutions reporting unit were reallocated to our new reporting units based on relative fair value.

We continue to closely monitor developments related to COVID-19 and other global events and macroeconomic conditions. The future magnitude, duration and effects of these events and conditions are difficult to predict at this time, and it is reasonably possible that future developments could have a negative effect on the estimates and assumptions utilized in our goodwill impairment assessments and could result in material impairment charges in future periods.

Accumulated impairment losses for goodwill as of September 30, 2022 were $833.1 million. There were no accumulated impairment losses for goodwill as of December 31, 2021.