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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The annual changes in the carrying amount of goodwill, by segment, as of December 31, 2020 and 2021, were as follows, respectively:
(in thousands) | North America |  | Europe |  | Asia Pacific |  | Total
Balance as of January 1, 2020 | $ | 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 |
Foreign exchange | (4) |  |  | (1,622) |  |  | (90) |  |  | (1,716) |
Reclassifications | — |  |  | (106) |  |  | — |  |  | (106) |
Balance as of December 31, 2021 | $ | 96,307 |  |  | $ | 36,331 |  |  | $ | 1,384 |  |  | $ | 134,022 |
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 multiple European countries that are evaluated as one reporting unit. 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 annual goodwill impairment test. In 2021, the Company applied the ("Step 1") approach where the Company compares the fair value of the reporting unit to its carrying value. The fair value calculation uses both the income approach (discounted cash flow method) and the market approach, equally weighted. If the Company determines that the carrying value of the net assets assigned to the reporting unit, including goodwill, exceeds the fair value of the reporting unit, no further action taken. If the Company determines that the carrying value of a reporting unit’s goodwill exceeds its implied fair value, the Company would record an impairment charge equal to the difference between the implied fair value of the goodwill and the carrying value. The 2021 and 2020 annual testing of goodwill for impairment did not result in impairment charges. "See Item 7 - Critical Accounting Policies and Estimates -Goodwill and Other Intangible Assets". Amortizable Intangible Assets Intangible assets from acquired businesses or asset purchases 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 twenty-one 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, 2021 was $73.0 million and $46.7 million, respectively. The aggregate amount of amortization expense of intangible assets for the years ended December 31, 2021, 2020 and 2019 was $6.4 million $6.1 million and $5.5 million, respectively. The weighted-average remaining amortization period for all amortizable intangibles on a combined basis is 8.0 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, 2021 and 2020 were as follows:
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Patents |  |
Balance at January 1, 2020 | $ | 4,659 |  |  | $ | (561) |  |  | $ | 4,098 |
Purchases | 40 |  |  | — |  |  | 40 |
Amortization | — |  |  | (373) |  |  | (373) |
Balance at December 31, 2020 | 4,699 |  |  | (934) |  |  | 3,765 |
Purchases | 6,074 |  |  | — |  |  | 6,074 |
Amortization | — |  |  | (428) |  |  | (428) |
Balance at December 31, 2021 | $ | 10,773 |  |  | $ | (1,362) |  |  | $ | 9,411 |
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Unpatented Technology |  |
Balance at January 1, 2020 | $ | 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 |
Amortization | — |  |  | (2,174) |  |  | (2,174) |
Reclassifications | 348 |  |  | — |  |  | 348 |
Foreign exchange | (49) |  |  | — |  |  | (49) |
Balance at December 31, 2021 | $ | 22,403 |  |  | $ | (18,666) |  |  | $ | 3,737 |
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Non-Compete Agreements, Trademarks and Other |  |
Balance at January 1, 2020 | $ | 14,703 |  |  | $ | (5,529) |  |  | $ | 9,174 |
Purchases | 6,700 |  |  |  |  | 6,700 |
Amortization | — |  |  | (2,195) |  |  | (2,195) |
Foreign exchange | 179 |  |  | — |  |  | 179 |
Balance at December 31, 2020 | 21,582 |  |  | (7,724) |  |  | 13,858 |
Amortization | — |  |  | (2,631) |  |  | (2,631) |
Foreign exchange | (148) |  |  | — |  |  | (148) |
Balance at December 31, 2021 | $ | 21,434 |  |  | $ | (10,355) |  |  | $ | 11,079 |
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Customer Relationships |  |
Balance at January 1, 2020 | $ | 17,660 |  |  | $ | (13,732) |  |  | $ | 3,928 |
Acquisition | 290 |  |  | — |  |  | 290 |
Amortization | — |  |  | (1,443) |  |  | (1,443) |
Foreign exchange | 173 |  |  | — |  |  | 173 |
Balance at December 31, 2020 | 18,123 |  |  | (15,175) |  |  | 2,948 |
Disposal | (217) |  |  | — |  |  | (217) |
Amortization | — |  |  | (1,186) |  |  | (1,186) |
Foreign exchange | (117) |  |  | — |  |  | (117) |
Balance at December 31, 2021 | $ | 17,789 |  |  | $ | (16,361) |  |  | $ | 1,428 |
As of December 31, 2021, estimated future amortization of intangible assets was as follows: (in thousands)
2022 | $ | 4,767 |
2023 | 3,807 |
2024 | 2,859 |
2025 | 2,612 |
2026 | 1,884 |
Thereafter | 9,724 |
| $ | 25,653 |
Indefinite-Lived Intangible Assets As of December 31, 2021, 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, 2021 and 2020 were as follows:
| 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 |
| At December 31, 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
(in thousands) |  |
Total Intangible Assets |  |
North America | $ | 46,643 |  |  | $ | (26,346) |  |  | $ | 20,297 |
Europe | 26,371 |  |  | (20,399) |  |  | 5,972 |
Total | $ | 73,014 |  |  | $ | (46,745) |  |  | $ | 26,269 |

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