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Goodwill and Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets Goodwill The annual changes in the carrying amount of goodwill, by segment, as of December 31, 2019 and 2020, were as follows, respectively:
(in thousands) | North America |  | Europe |  | Asia Pacific |  | Total
Balance as of January 1, 2019 | $ | 96,435 |  |  | $ | 32,471 |  |  | $ | 1,344 |  |  | $ | 130,250 |
Goodwill acquired | — |  |  | 1,815 |  |  | — |  |  | 1,815 |
Foreign exchange | 129 |  |  | 14 |  |  | (9) |  |  | 134 |
Reclassifications (1) | (320) |  |  | — |  | — |  | (320) |
Balance as of December 31, 2019 | 96,244 |  |  | 34,300 |  |  | 1,335 |  |  | 131,879 |
Goodwill acquired | — |  |  | 106 |  |  | — |  |  | 106 |
Foreign exchange | 67 |  |  | 3,661 |  |  | 139 |  |  | 3,867 |
Reclassifications | — |  |  | (8) |  |  | — |  |  | (8) |
Balance as of December 31, 2020 | $ | 96,311 |  |  | $ | 38,059 |  |  | $ | 1,474 |  |  | $ | 135,844 |
(1) Reclassifications during 2019 for an acquisition included the recognition of $481 thousand in non-compete agreements, trademarks and other, with a corresponding reductions of $320 thousand in goodwill and $161 thousand in other assets. Goodwill Impairment Testing The Company tests goodwill for impairment at the reporting unit level on an annual basis (in the fourth quarter). Our goodwill balance is not amortized to expense, and we may assess qualitative factors and quantitative factors to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount as a basis for determining whether it is necessary to complete quantitative impairment assessments. The reporting unit level is generally one level below the operating segment, which is at the country level, except for the U.S., Australia and S&P Clever reporting units. The Company determined that the U.S. reporting unit includes four components: Northwest United States, Southwest United States, Northeast United States and Southeast United States. The Australia reporting unit includes two components: Australia and New Zealand. The S&P Clever reporting unit includes ten components: S&P Switzerland, S&P Poland, S&P The Netherlands, S&P Portugal, S&P Germany, S&P France, Socom, S&P Nordic and S&P Spain. For each of these reporting units, the Company aggregated the components because management concluded that they are economically similar and that the goodwill is recoverable from these components working in concert. We evaluate the recoverability of goodwill in accordance with Accounting Standard Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other. In addition, the Company prospectively adopted as part of its review in 2018 the Financial Accounting Standard Board (FASB) issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. We assessed the qualitative factors related to the goodwill of the reporting units to determine whether it is necessary to perform an impairment test. We also considered quantitative factors due to the effects of the COVID-19 pandemic. If the Company judges that it is more likely than not that the fair value of the reporting unit is greater than the carrying amount, including goodwill, no further testing is required. This assessment method was utilized in our 2020 and 2019 annual goodwill impairment test. The 2020 and 2019 annual testing of goodwill for impairment did not result in impairment charges. Amortizable Intangible Assets Intangible assets from acquired businesses are recognized at their estimated fair values on the date of acquisition and consist of patents, unpatented technology, non-compete agreements, trademarks, customer relationships and other intangible assets. Finite-lived intangibles are amortized to expense over the applicable useful lives, ranging from three to 21 years, based on the nature of the asset and the underlying pattern of economic benefit as reflected by future net cash inflows. The Company performs an impairment test of finite-lived intangibles whenever events or changes in circumstances indicate their carrying value may be impaired. The total gross carrying amount and accumulated amortization of definite-lived intangible assets at December 31, 2020 were $67.1 million and $59.3 million, respectively. The aggregate amount of amortization expense of intangible assets for the years ended December 31, 2020, 2019 and 2018 was $6.1 million, $5.5 million and $6.0 million, respectively. The weighted-average remaining amortization period for all amortizable intangibles on a combined basis is 6.5 years. The annual changes in the carrying amounts of patents, unpatented technologies, customer relationships and non-compete agreements and other intangible assets subject to amortization for the years ended December 31, 2020 and 2019 were as follows:
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Patents |  |
Balance at January 1, 2019 | $ | 2,109 |  |  | $ | (411) |  |  | $ | 1,698 |
Purchases of intangibles | 2,550 |  |  | — |  |  | 2,550 |
Amortization | — |  |  | (150) |  |  | (150) |
Balance at December 31, 2019 | 4,659 |  |  | (561) |  |  | 4,098 |
Purchases of intangible assets | 40 |  |  | — |  |  | 40 |
Amortization | — |  |  | (373) |  |  | (373) |
Balance at December 31, 2020 | $ | 4,699 |  |  | $ | (934) |  |  | $ | 3,765 |
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Unpatented Technology |  |
Balance at January 1, 2019 | $ | 20,662 |  |  | $ | (12,344) |  |  | $ | 8,318 |
Amortization | — |  |  | (2,017) |  |  | (2,017) |
Assets acquisitions, net of cash acquired | 788 |  |  | — |  |  | 788 |
Foreign exchange | 166 |  |  | — |  |  | 166 |
Balance at December 31, 2019 | 21,616 |  |  | (14,361) |  |  | 7,255 |
Amortization | — |  |  | (2,131) |  |  | (2,131) |
Foreign exchange | 488 |  |  | — |  |  | 488 |
Balance at December 31, 2020 | $ | 22,104 |  |  | $ | (16,492) |  |  | $ | 5,612 |
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Non-Compete Agreements, Trademarks and Other |  |
Balance at January 1, 2019 | $ | 12,225 |  |  | $ | (3,719) |  |  | $ | 8,506 |
Purchases of intangibles assets - other | 2,081 |  |  | — |  |  | 2,081 |
Assets acquisitions, net of cash acquired | 6 |  |  | — |  |  | 6 |
Amortization | — |  |  | (1,910) |  |  | (1,910) |
Foreign exchange | 10 |  |  | — |  |  | 10 |
Reclassifications(1) | 481 |  |  | — |  |  | 481 |
Removal of fully amortized assets | (100) |  |  | 100 |  |  | — |
Balance at December 31, 2019 | 14,703 |  |  | (5,529) |  |  | 9,174 |
Purchases of intangible assets - licenses | 6,700 |  |  |  |  | 6,700 |
Amortization | — |  |  | (2,195) |  |  | (2,195) |
Foreign exchange | 179 |  |  | — |  |  | 179 |
Balance at December 31, 2020 | $ | 21,582 |  |  | $ | (7,724) |  |  | $ | 13,858 |
(1)Reclassifications during 2019 for an acquisition included $481 thousand recognized for non-compete agreements, trademarks and other, with a corresponding reductions of $320 thousand in goodwill and $161 thousand in other assets.
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Customer Relationships |  |
Balance at January 1, 2019 | $ | 17,563 |  |  | $ | (12,299) |  |  | $ | 5,264 |
Acquisition | 124 |  |  | — |  |  | 124 |
Amortization | — |  |  | (1,433) |  |  | (1,433) |
Foreign exchange | (27) |  |  | — |  |  | (27) |
Balance at December 31, 2019 | 17,660 |  |  | (13,732) |  |  | 3,928 |
Purchases of intangible assets | 290 |  |  | — |  |  | 290 |
Amortization | — |  |  | (1,443) |  |  | (1,443) |
Foreign exchange | 173 |  |  | — |  |  | 173 |
Balance at December 31, 2020 | $ | 18,123 |  |  | $ | (15,175) |  |  | $ | 2,948 |
At December 31, 2020, estimated future amortization of intangible assets was as follows: (in thousands)
2021 | $ | 6,304 |
2022 | 4,205 |
2023 | 3,339 |
2024 | 2,290 |
2025 | 2,022 |
Thereafter | 8,024 |
| $ | 26,184 |
Indefinite-Lived Intangible Assets As of December 31, 2020, the only indefinite-lived intangible asset was a trade name in the amount of $0.6 million. Definite-lived and indefinite-lived assets, net, by segment as of December 31, 2020 and 2019 were as follows:
| December 31, 2019
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
(in thousands) |  |
Total Intangible Assets |  |
North America | $ | 33,756 |  |  | $ | (19,173) |  |  | $ | 14,583 |
Europe | 25,500 |  |  | (15,012) |  |  | 10,488 |
Total | $ | 59,256 |  |  | $ | (34,185) |  |  | $ | 25,071 |
| At December 31, 2020
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
(in thousands) |  |
Total Intangible Assets |  |
North America | $ | 40,786 |  |  | $ | (22,697) |  |  | $ | 18,089 |
Europe | 26,341 |  |  | (17,630) |  |  | 8,711 |
Total | $ | 67,127 |  |  | $ | (40,327) |  |  | $ | 26,800 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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