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Goodwill and Long-Lived Assets (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Property and Equipment

Property and Equipment. Property and equipment as of December 31, 2023 and 2022 consisted of the following (in thousands, except years):

 

 

 

Useful Lives

 

 

 

 

 

 

 

 

 

(Years)

 

 

December 31, 2023

 

 

December 31, 2022

 

Computer equipment

 

3-6

 

 

$

89,946

 

 

$

85,432

 

Leasehold improvements

 

 

10

 

 

 

27,134

 

 

 

23,996

 

Operating equipment

 

3-8

 

 

 

67,825

 

 

 

65,949

 

Furniture and fixtures

 

 

8

 

 

 

2,456

 

 

 

1,876

 

 

 

 

 

 

 

187,361

 

 

 

177,253

 

Less – accumulated depreciation

 

 

 

 

 

(121,816

)

 

 

(105,466

)

Property and equipment, net

 

 

 

 

$

65,545

 

 

$

71,787

 
Rollforward of Goodwill

Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill for 2022 and 2023 is as follows (in thousands):

 

January 1, 2022 balance

 

$

321,330

 

Adjustments related to prior acquisitions

 

 

1,896

 

Impairment charge related to MobileCard Holdings, LLC

 

 

(7,211

)

Effects of changes in foreign currency exchange rates

 

 

(11,979

)

December 31, 2022 balance

 

 

304,036

 

Adjustments related to prior acquisitions

 

 

(20

)

Impairment charge related to Keydok, LLC

 

 

(1,118

)

Effects of changes in foreign currency exchange rates

 

 

5,698

 

December 31, 2023, balance

 

$

308,596

 

 

The 2022 adjustments related to prior acquisitions are primarily a result of the finalization of the purchase accounting for MobileCard Holdings, LLC (“MobileCard”) and DGIT Systems Pty Ltd (“DGIT”). See Notes 7 and 8 for further discussion, to include the decisions to dissolve the MobileCard and Keydok, LLC (“Keydok”) businesses, resulting in the impairment charges recorded above.
Summary of Carrying Value of Other Intangible Assets

Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist of acquired customer contracts and software.

Acquired Customer Contracts. As of December 31, 2023 and 2022, the carrying values of our acquired customer contracts were as follows (in thousands):

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Amount

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Amount

 

Acquired customer contracts (1)

 

$

162,348

 

 

$

(126,469

)

 

$

35,879

 

 

$

165,497

 

 

$

(120,080

)

 

$

45,417

 

Software. Software consists of: (i) software and similar intellectual property rights from various business acquisitions; and (ii) internal use software. As of December 31, 2023 and 2022, the carrying values of our software assets were as follows (in thousands):

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Gross

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

Net

 

 

Carrying

 

 

Accumulated

 

 

Net

 

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

Acquired software (2)

 

$

84,031

 

 

$

(77,520

)

 

$

6,511

 

 

$

83,543

 

 

$

(74,578

)

 

$

8,965

 

Internal use software (3)

 

 

87,794

 

 

 

(80,081

)

 

 

7,713

 

 

 

89,568

 

 

 

(75,759

)

 

 

13,809

 

Total software

 

$

171,825

 

 

$

(157,601

)

 

$

14,224

 

 

$

173,111

 

 

$

(150,337

)

 

$

22,774

 
Summary of Aggregate Amortization Related to Intangible Assets

The aggregate amortization related to acquired customer contracts included in our operations for 2023, 2022, and 2021 was as follows (in thousands):

 

 

 

2023

 

 

2022

 

 

2021

 

Acquired customer contracts (1)

 

$

9,775

 

 

$

11,605

 

 

$

9,240

 
(1)
Acquired customer contracts represent assets acquired in our prior business acquisitions. Acquired customer contracts are amortized over their estimated useful lives ranging from three to twenty years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized, with the amortization expense included as cost of revenue in our Income Statements.

The aggregate amortization related to software included in our operations for 2023, 2022, and 2021 was as follows (in thousands):

 

 

 

2023

 

 

2022

 

 

2021

 

Acquired software amortization (2)

 

$

2,410

 

 

$

2,750

 

 

$

2,405

 

Internal use software amortization (3)

 

 

13,624

 

 

 

14,140

 

 

 

13,316

 

Total software amortization

 

$

16,034

 

 

$

16,890

 

 

$

15,721

 

 

(2)
Acquired software represents software intangible assets acquired in our prior business acquisitions, which are amortized over their estimated useful lives ranging from four to eight years. The amortization of acquired software is reflected as a cost of revenue in our Income Statements.
(3)
Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from one to ten years.
Summary of Carrying Values of Customer Contract Cost Assets

Customer Contract Costs. As of December 31, 2023 and 2022, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands):

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Gross

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

Net

 

 

Carrying

 

 

Accumulated

 

 

Net

 

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

Customer contract incentives (4)

 

$

7,027

 

 

$

(4,935

)

 

$

2,092

 

 

$

6,626

 

 

$

(3,798

)

 

$

2,828

 

Capitalized costs (5)

 

 

71,976

 

 

 

(29,027

)

 

 

42,949

 

 

 

63,081

 

 

 

(20,459

)

 

 

42,622

 

Capitalized commission fees (6)

 

 

17,512

 

 

 

(8,132

)

 

 

9,380

 

 

 

15,629

 

 

 

(6,344

)

 

 

9,285

 

Total customer contract costs

 

$

96,515

 

 

$

(42,094

)

 

$

54,421

 

 

$

85,336

 

 

$

(30,601

)

 

$

54,735

 
Summary of Aggregate Amortization Related to Customer Contract Costs

The aggregate amortization related to our customer contract costs included in our operations for 2023, 2022, and 2021 was as follows (in thousands):

 

 

 

2023

 

 

2022

 

 

2021

 

Customer contract incentives amortization (4)

 

$

1,136

 

 

$

792

 

 

$

687

 

Capitalized costs amortization (5)

 

 

15,422

 

 

 

15,918

 

 

 

17,955

 

Capitalized commission fees amortization (6)

 

 

3,733

 

 

 

3,028

 

 

 

2,576

 

Total customer contract costs amortization

 

$

20,291

 

 

$

19,738

 

 

$

21,218

 
(4)
Customer contract incentives consist principally of incentives provided to new or existing customers to convert their customer accounts to, or retain their customer accounts on, our solutions. Customer contract incentives are amortized ratably over the contract period to include renewal periods, if applicable, which as of December 31, 2023, have termination dates that range from 2024 to 2027. The amortization of customer contract incentives is reflected as a reduction of revenue in our Income Statements.
(5)
Capitalized costs are related to: (i) customer conversion/set-up activities; and (ii) direct material costs to fulfill long-term revenue management solutions and managed services arrangements. These costs are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023, range from 2024 to 2036, and are included in cost of revenue in our Income Statements.
(6)
Capitalized commission fees are incremental commissions paid as a result of obtaining a customer contract. These fees are amortized over the contract period based on the transfer of goods or services to which the assets relate, which as of December 31, 2023, range from 2024 to 2029, and are included in Selling, General, and Administrative (“SG&A”) expenses in our Income Statements. Incremental commission fees incurred as a result of obtaining a customer contract are expensed when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less.