XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.22.2

Identifiable Intangible Assets and Goodwill | 6 Months Ended
--- | ---
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Identifiable Intangible Assets and Goodwill | IDENTIFIABLE INTANGIBLE ASSETS AND GOODWILL The Company's identifiable intangible assets represent intangible assets acquired in acquisitions and software development costs. The Company capitalizes certain costs related to the development of its unified commerce software platform and other software applications for internal use in accordance with ASC Topic 350-40, Intangibles - Goodwill and Other - Internal - Use Software. The Company begins to capitalize its costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. The Company stops capitalizing these project costs when software is substantially complete and ready for its intended use, including the completion of all significant testing. These project costs are amortized on a straight-line basis over the estimated useful life of the related asset, generally estimated to be three to seven years. The Company also capitalizes costs related to specific upgrades and enhancements, when it is probable the expenditure will result in additional functionality, and expense costs are incurred for maintenance and minor upgrades and enhancements. Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded within research and development expenses in the Company's condensed consolidated statements of operations. The Company exercises judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs, and in determining the estimated useful lives over which the costs are amortized. To the extent the Company can change the manner in which new features and functionalities are developed and tested related to its software products, by assessing the ongoing value of capitalized assets or determining the estimated useful lives over which the costs are amortized, the amount of internal-use software development costs the Company capitalizes and amortizes could change in future periods. Included in identifiable intangible assets are approximately $3.8 million and $3.4 million of costs related to software products that did not satisfy the general release threshold as of June 30, 2022 and December 31, 2021, respectively. These software products are expected to be ready for their intended use within the next 12 months. Software costs related to products placed into service during the three months ended June 30, 2022 and 2021 were $1.4 million and $2.7 million, respectively. Software costs related to products placed into service during the six months ended June 30, 2022 and 2021 were $2.9 million and $7.5 million, respectively. Annual amortization charged to cost of sales related to the Company's software products is computed using the straight-line method over the remaining estimated economic life of the product, which is generally three years. Amortization of acquired developed technology for the three months ended June 30, 2022 and 2021 was $3.7 million and $3.7 million, respectively. Amortization of acquired developed technology for the six months ended June 30, 2022 and 2021 was $7.3 million and $4.6 million, respectively. Amortization of internally developed software costs for the three months ended June 30, 2022 and 2021 was $1.7 million and $1.3 million, respectively. Amortization of internally developed software costs for the six months ended June 30, 2022 and 2021 was $3.3 million and $2.4 million, respectively. The components of identifiable intangible assets are:
(in thousands) | June 30, 2022 |  | December 31, 2021 |  |  |  | Estimated Useful Life |  | Weighted-Average Amortization Period
Acquired developed technology | $ | 109,100 |  |  | $ | 109,100 |  |  |  |  | 3 - 7 years |  | 4.86 years
Internally developed software costs | 28,672 |  |  | 25,735 |  |  |  |  | 3 years |  | 2.67 years
Customer relationships | 12,360 |  |  | 12,360 |  |  |  |  | 7 years |  | 5 years
Trade names | 1,410 |  |  | 1,410 |  |  |  |  | 2 - 5 years |  | 3 years
Non-competition agreements | 30 |  |  | 30 |  |  |  |  | 1 year |  | 1 year
| 151,572 |  |  | 148,635 |  |  |  |  |  |  |
Less accumulated amortization | (51,045) |  |  | (39,479) |  |  |  |  |  |  |
| 100,527 |  |  | 109,156 |  |  |  |  |  |  |
Internally developed software costs not meeting general release threshold | 3,756 |  |  | 3,407 |  |  |  |  |  |  |
Trademarks, trade names (non-amortizable) | 6,200 |  |  | 6,200 |  |  |  |  | Indefinite |  |
| $ | 110,483 |  |  | $ | 118,763 |  |  |  |  |  |  |
The expected future amortization of intangible assets, assuming straight-line amortization of capitalized software development costs and acquisition related intangibles, excluding software development costs not meeting the general release threshold, is as follows:
(in thousands) |
2022, remaining | $ | 11,503 |
2023 | 21,111 |
2024 | 18,571 |
2025 | 16,501 |
2026 | 16,091 |
Thereafter | 16,750 |
Total | $ | 100,527 |
The Company operates in two reporting segments, Restaurant/Retail and Government, which are the identified reporting units for purposes of evaluating goodwill impairment. The Company tests goodwill for impairment on an annual basis, or more often if events or circumstances indicate that there may be impairment of goodwill. Goodwill is assigned to a specific reporting unit at the date the goodwill is initially recorded; once assigned, goodwill no longer retains its association with a particular acquisition and all of the activities within the reporting unit, whether acquired organically or from a third-party, are available to support the value of the goodwill. Goodwill carried by the Restaurant/Retail and Government segments is as follows:
(in thousands) |
Beginning balance - December 31, 2021 | $ | 457,306 |
Q1 2022 Acquisition | 1,212 |
ASC 805 measurement period adjustment | (1,085) |
Ending balance - June 30, 2022 | $ | 457,433 |
Refer to “Note 3 — Acquisitions”, for additional information on goodwill from the Q1 2022 Acquisition.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration