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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
9. | Goodwill and Other Intangible Assets
Goodwill The changes in goodwill during the period January 1 to December 31, 2021 were as follows:
(In thousands) | Fleet Solutions Segment |  | Travel and Corporate Solutions Segment |  | Health and Employee Benefit Solutions Segment |  | Total
Gross goodwill, January 1, 2021 | $ | 1,392,711 |  |  | $ | 751,398 |  |  | $ | 608,204 |  |  | $ | 2,752,313 |
Current year acquisition | — |  |  | — |  |  | 168,424 |  |  | 168,424 |
Measurement period adjustments | — |  |  | 78,426 |  |  | — |  |  | 78,426 |
Foreign currency translation | (12,139) |  |  | (14,792) |  |  | — |  |  | (26,931) |
Gross goodwill, December 31, 2021 | $ | 1,380,572 |  |  | $ | 815,032 |  |  | $ | 776,628 |  |  | $ | 2,972,232 |
Accumulated impairment, January 1, 2021 | $ | (54,240) |  |  | $ | (9,935) |  |  | $ | — |  |  | $ | (64,175) |
Accumulated impairment, December 31, 2021 | $ | (54,240) |  |  | $ | (9,935) |  |  | $ | — |  |  | $ | (64,175) |
Net goodwill, January 1, 2021 | $ | 1,338,471 |  |  | $ | 741,463 |  |  | $ | 608,204 |  |  | $ | 2,688,138 |
Net goodwill, December 31, 2021 | $ | 1,326,332 |  |  | $ | 805,097 |  |  | $ | 776,628 |  |  | $ | 2,908,057 |
The changes in goodwill during the period January 1 to December 31, 2020 were as follows:
(In thousands) | Fleet Solutions Segment |  | Travel and Corporate Solutions Segment |  | Health and Employee Benefit Solutions Segment |  | Total
Gross goodwill, January 1, 2020 | $ | 1,378,107 |  |  | $ | 455,007 |  |  | $ | 622,109 |  |  | $ | 2,455,223 |
2020 acquisitions | — |  |  | 291,884 |  |  | — |  |  | 291,884 |
Sale of subsidiary | (3,225) |  |  | — |  |  | (9,936) |  |  | (13,161) |
Foreign currency translation | 17,829 |  |  | 4,507 |  |  | (3,969) |  |  | 18,367 |
Gross goodwill, December 31, 2020 | $ | 1,392,711 |  |  | $ | 751,398 |  |  | $ | 608,204 |  |  | $ | 2,752,313 |
Accumulated impairment, January 1, 2020 | $ | (4,087) |  |  | $ | (9,935) |  |  | $ | — |  |  | $ | (14,022) |
Sale of subsidiary | 3,225 |  |  | — |  |  | — |  |  | 3,225 |
WEX Fleet Europe impairment | (53,378) |  |  | — |  |  | — |  |  | (53,378) |
Accumulated impairment, December 31, 2020 | $ | (54,240) |  |  | $ | (9,935) |  |  | $ | — |  |  | $ | (64,175) |
Net goodwill, January 1, 2020 | $ | 1,374,020 |  |  | $ | 445,072 |  |  | $ | 622,109 |  |  | $ | 2,441,201 |
Net goodwill, December 31, 2020 | $ | 1,338,471 |  |  | $ | 741,463 |  |  | $ | 608,204 |  |  | $ | 2,688,138 |
During the Company's annual goodwill assessment completed as of October 1, 2020, management determined that the reduced volumes attributable in part to COVID-19, had a significant negative impact on the fair value of the WEX Fleet Europe reporting unit (the 2019 Go Fuel Card acquisition). The fair value of the reporting unit was calculated using a combination of the income and market approaches, utilizing significant judgments including estimated cash flows and market prices from comparable businesses. As the carrying value of this reporting unit exceeded its fair value, the Company recorded a non-cash goodwill impairment charge of $53.4 million to the Fleet Solutions segment. The Company did not record any impairment charges during its annual goodwill assessments completed in the fourth quarter of 2021 and 2019. Other Intangible Assets Other intangible assets consist of the following:
| December 31, 2021 |  | December 31, 2020
(in thousands) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Definite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |
Acquired software and developed technology | $ | 288,772 |  |  | $ | (192,715) |  |  | $ | 96,057 |  |  | $ | 327,134 |  |  | $ | (164,245) |  |  | $ | 162,889 |
Customer relationships | 1,888,735 |  |  | (733,008) |  |  | 1,155,727 |  |  | 1,842,709 |  |  | (608,178) |  |  | 1,234,531 |
Contractual rights 1 | 263,417 |  |  | (8,847) |  |  | 254,570 |  |  | — |  |  | — |  |  | — |
Licensing agreements | 145,718 |  |  | (41,378) |  |  | 104,340 |  |  | 152,805 |  |  | (35,010) |  |  | 117,795 |
Non-compete agreement | 2,150 |  |  | (251) |  |  | 1,899 |  |  | — |  |  | — |  |  | — |
Patent | 2,401 |  |  | (2,401) |  |  | — |  |  | 2,549 |  |  | (2,549) |  |  | — |
Trade names and brand names | 61,704 |  |  | (31,001) |  |  | 30,703 |  |  | 61,978 |  |  | (25,181) |  |  | 36,797 |
Total | $ | 2,652,897 |  |  | $ | (1,009,601) |  |  | $ | 1,643,296 |  |  | $ | 2,387,175 |  |  | $ | (835,163) |  |  | $ | 1,552,012 |
1 Contractual rights represent intangible rights to serve as custodian or sub-custodian to certain HSAs acquired from the HealthcareBank division of Bell Bank. See Note 4, Acquisitions for more information. During the years ended December 31, 2021, 2020 and 2019, amortization expense was $181.7 million, $171.1 million and $159.4 million, respectively. The following table presents the estimated amortization expense related to the definite-lived intangible assets listed above for each of the next five fiscal years:
(in thousands) |
2022 | $ | 170,899 |
2023 | $ | 174,368 |
2024 | $ | 165,286 |
2025 | $ | 154,340 |
2026 | $ | 145,943 |

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