Goodwill and intangible assets

3 Months Ended

Mar. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

10. Goodwill and intangible assets

The following table presents the changes in goodwill for the year ended December 31, 2019 and three months ended March 31, 2020:

	For the year ended December 31,				For the three months ended March 31,
	2019				2020
Opening balance	$	1,393,832	$	1,574,466
Goodwill relating to acquisitions consummated during the period		185,381		—
Impact of measurement period adjustments		(988)		—
Effect of exchange rate fluctuations		(3,759)		(19,787)
Closing balance	$	1,574,466	$	1,554,679

The following table presents the changes in goodwill by reporting unit for the three months ended March 31, 2020:


		BCMI	CGRLH	HMS	Total
Opening balance	$	417,213	555,130	602,123	1,574,466
Goodwill relating to acquisitions consummated during the period		—	—	—	—
Impact of measurement period adjustments		—	—	—	—
Effect of exchange rate fluctuations		(5,683)	(7,262)	(6,842)	(19,787)
Closing balance	$	411,530	547,868	595,281	1,554,679

The following table presents the changes in goodwill by reporting unit for the year ended December 31, 2019:


		BCMI	CGRLH	HMS	Total
Opening balance	$	398,601	512,296	482,935	1,393,832
Goodwill relating to acquisitions consummated during the period		20,072	44,365	120,944	185,381
Impact of measurement period adjustments		(380)	(151)	(457)	(988)
Effect of exchange rate fluctuations		(1,080)	(1,380)	(1,299)	(3,759)
Closing balance	$	417,213	555,130	602,123	1,574,466

The total amount of goodwill deductible for tax purposes was $282,524 and $275,943 as of December 31, 2019 and March 31, 2020, respectively.

10. Goodwill and intangible assets (Continued)

The Company’s intangible assets are as follows:

	As of December 31, 2019						As of March 31,2020
	Gross carrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	415,386	$	325,910	$	89,476	$	407,549	$	327,266	$	80,283
Marketing-related intangible assets		84,169		54,031		30,138		83,791		55,426		28,365
Technology-related intangible assets		149,262		61,150		88,112		156,400		68,734		87,666
Intangible assets under development		26,646		3,511		23,135		18,722		—		18,722
		675,463		444,602	$	230,861	$	666,462	$	451,426	$	215,036

Amortization expenses for intangible assets acquired as a part of business combination and disclosed in the consolidated statements of income under amortization of acquired intangible assets for the three months ended March 31, 2019 and 2020 were $8,509 and $10,741, respectively.

Amortization expenses for internally-developed and other intangible assets disclosed in the consolidated statements of income under cost of revenue and selling, general and administrative expenses for the three months ended March 31, 2019 and 2020 were $3,645 and $6,906, respectively.

Amortization expenses for the technology-related, internally-developed intangible assets set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $(7) and $(17) for the three months ended March 31, 2019 and 2020, respectively.

During the first quarter of 2020, the Company reviewed the carrying value of intangibles and goodwill due to the events and circumstances surrounding the COVID-19 pandemic. The Company has used internal and external information, including recently signed client engagements for which service delivery has not yet begun and projections adjusted to meet economic forecasts, for the purpose of computation and developing assumptions. No impairment loss on the Company’s intangible assets or goodwill during the three months ended March 31, 2020 was recorded as a result of such review and no change in amortization method or period was required for the intangible assets.