Goodwill and intangible assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents the changes in goodwill for the years ended December 31, 2020 and 2021:


	As of December 31,
	2020		2021
Opening balance	$	1,574,466	$	1,695,688
Goodwill relating to acquisitions consummated during the period	123,595		44,216
Impact of measurement period adjustments	(5,653)		1,205
Effect of exchange rate fluctuations	3,280		(10,082)
Closing balance	$	1,695,688	$	1,731,027

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 year ended December 31, 2021:


	BCMI		CGRLH		HMS		Total
Opening balance	$	420,172	$	607,574	$	667,942	$	1,695,688
Goodwill relating to acquisitions consummated during the period	4,167		7,032		33,017		44,216
Impact of measurement period adjustments	35		309		861		1,205
Effect of exchange rate fluctuations	(3,117)		(3,795)		(3,170)		(10,082)
Closing balance	$	421,257	$	611,120	$	698,650	$	1,731,027

During the years ended December 31, 2020 and 2021, in accordance with ASC 350, Intangibles-Goodwill and Other, the Company performed an assessment to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on such assessment, as of December 31, 2020 and 2021, the Company concluded that it is not more likely than not that the fair values of any of the Company’s reporting units are less than their carrying amounts.

The total amount of the Company’s goodwill deductible for tax purposes was $296,046 and $326,795 as of December 31, 2020 and 2021, respectively.

The Company’s intangible assets are as follows:


	As of December 31, 2020						As of December 31, 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	$	489,974	$	394,688	$	95,286
Marketing-related intangible assets	96,561		61,154		35,407		98,870		76,663		22,207
Technology-related intangible assets	152,293		90,866		61,427		171,772		119,630		52,142
Intangible assets under development	23,864		2,503		21,361		—		—		—
Total	$	750,907	$	514,175	$	236,732	$	760,616	$	590,981	$	169,635

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 years ended December 31, 2019, 2020 and 2021 were $32,612, $43,343 and $58,448, 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 years ended December 31, 2019, 2020 and 2021 were $18,957, $27,290 and $24,987, 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 $(76), $74 and $(157) for the years ended December 31, 2019, 2020 and 2021, respectively.

During the years ended December 31, 2019, 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 the Company’s investment strategy and market trends which led to a decision to cease certain service offerings. Based on the results of its testing, the Company determined that the carrying value of certain assets tested were not recoverable and the Company recorded complete write-downs of the carrying values of these assets amounting to $3,511, $14,083 and $915 for the years ended December 31, 2019, 2020 and 2021, respectively. These write-downs have been recorded in “other operating (income) expense, net” in the consolidated statements of income.

10. Goodwill and intangible assets (Continued)

The summary below represents the impairment charges recorded for various categories of assets during the years ended December 31, 2019, 2020 and 2021:


	Year ended December 31,
	2019		2020		2021
Technology related intangibles	$	3,511	$	5,179	$	205
Customer related intangibles	—		938		—
Total Intangibles	$	3,511	$	6,117	$	205
Property, plant and equipment	$	—	$	7,966	$	710
Total Property, plant and equipment	$	—	$	7,966	$	710
Grand Total	$	3,511	$	14,083	$	915

The estimated amortization schedule for the Company’s intangible assets for future periods is set out below:


For the year ending December 31:
2022	$	63,620
2023	48,718
2024	32,938
2025	19,527
2026 and beyond	4,832
Total	$	169,635