GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

As of June 30, 2023 and December 31, 2022, goodwill and other intangible assets consisted of the following:


	June 30, 2023		December 31, 2022

	(in thousands)

Goodwill	$	26,491,160	$	23,320,736
Other intangible assets:
Customer-related intangible assets	$	10,477,777	$	9,524,922
Acquired technologies	3,029,770		2,863,731
Contract-based intangible assets	2,299,501		1,741,321
Trademarks and trade names	1,074,496		1,067,745
	16,881,544		15,197,719
Less accumulated amortization:
Customer-related intangible assets	3,472,869		3,155,838
Acquired technologies	1,870,202		1,692,762
Contract-based intangible assets	248,503		197,478
Trademarks and trade names	547,980		493,267
	6,139,554		5,539,345
	$	10,741,990	$	9,658,374

The following table sets forth the changes by reportable segment in the carrying amount of goodwill for the six months ended June 30, 2023:


	Merchant Solutions		Issuer Solutions		Total

	(in thousands)
Balance at December 31, 2022	$	13,816,945	$	9,503,791	$	23,320,736
Goodwill acquired	3,197,505		—		3,197,505
Effect of foreign currency translation	(39,822)		12,977		(26,845)
Measurement period adjustments	(236)		—		(236)
Balance at June 30, 2023	$	16,974,392	$	9,516,768	$	26,491,160

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.

During the second quarter of 2022, the sustained decline in our share price and recent 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 portion of our former Business and Consumer Solutions reporting unit also indicated a potential decline in fair value 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 the 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 for the three and six months ended June 30, 2022.

Accumulated impairment losses for goodwill as of June 30, 2023 were $357.9 million. Accumulated impairment losses for goodwill as of December 31, 2022 were $833.1 million, of which $475.2 million related to assets held for sale.