Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]


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 rights1	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