Goodwill and intangible assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents the changes in goodwill for the year ended December 31, 2020 and nine months ended September 30, 2021:


	For the year ended December 31, 2020	For the nine months ended September 30, 2021
Opening balance	1,574,466	1,695,688
Goodwill relating to acquisitions consummated during the period	123,595	—
Impact of measurement period adjustments	(5,653)	(108)
Effect of exchange rate fluctuations	3,280	(9,896)
Closing balance	1,695,688	1,685,684

The following table presents the changes in goodwill by reporting unit for the year ended December 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	2,559	52,612	68,424	123,595
Impact of measurement period adjustments	(542)	(1,372)	(3,739)	(5,653)
Effect of exchange rate fluctuations	942	1,204	1,134	3,280
Closing balance	420,172	607,574	667,942	1,695,688

10. Goodwill and intangible assets (Continued)

The following table presents the changes in goodwill by reporting unit for the nine months ended September 30, 2021:


	BCMI	CGRLH	HMS	Total
Opening balance	420,172	607,574	667,942	1,695,688
Goodwill relating to acquisitions consummated during the period	—	—	—	—
Impact of measurement period adjustments	(3)	(28)	(77)	(108)
Effect of exchange rate fluctuations	(3,061)	(3,726)	(3,109)	(9,896)
Closing balance	417,108	603,820	664,756	1,685,684

The total amount of goodwill deductible for tax purposes was $296,046 and $277,428 as of December 31, 2020 and September 30, 2021, respectively.

The Company’s intangible assets are as follows:


	As of December 31, 2020						As of September 30, 2021
	Gross carrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	478,189	$	359,652	$	118,537	$	474,041	$	385,494	$	88,547
Marketing-related intangible assets	96,561		61,154		35,407		96,395		73,113		23,282
Technology-related intangible assets	152,293		90,866		61,427		171,547		112,368		59,179
Intangible assets under development	23,864		2,503		21,361		—		—		—
	$	750,907	$	514,175	$	236,732	$	741,983	$	570,975	$	171,008

Amortization expenses for intangible assets acquired as part of a business combination and disclosed in the consolidated statements of income under amortization of acquired intangible assets for the nine months ended September 30, 2020 and 2021 were $31,673 and $44,624, respectively, and for the three months ended September 30, 2020 and 2021 were $10,235 and $13,898, 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 nine months ended September 30, 2020 and 2021 were $20,932 and $18,841, respectively, and for the three months ended September 30, 2020 and 2021 were $6,896 and $6,919, respectively.

During the three and nine months ended September 30, 2020 and 2021, the Company tested for recoverability certain customer-related and technology-related intangible assets, including those under development, and certain property, plant and equipment, as a result of changes in market trends and the Company’s investment strategy, including the Company's decisions to cease certain service offerings. Based on the results of this testing, the Company determined that the carrying values of the assets tested were not recoverable, and the Company recorded complete write-downs of the carrying values of these assets amounting to $10,647 and $915 for the nine months ended September 30, 2020 and 2021, respectively, and $674 and $0 for the three months ended September 30, 2020 and 2021, respectively. These write-downs have been recorded in “other operating (income) expense, net” in the consolidated statement of income.

10. Goodwill and intangible assets (Continued)

The summary below represents the impairment charge recorded for various categories of assets during the three and nine months ended September 30, 2020 and September 30, 2021:


	Three months ended September 30,				Nine months ended September 30,
	2020		2021		2020		2021
Technology related intangibles	$	347	$	—	$	4,878	$	205
Customer related intangibles	—		—		1,239		—
Total Intangibles	$	347	$	—	$	6,117	$	205
Property, plant and equipment	$	327	$	—	$	4,530	$	710
Total Property, plant and equipment	$	327	$	—	$	4530	$	710
Grand Total	$	674	$	—	$	10,647	$	915