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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination and is assigned to the reporting unit that is expected to benefit from the synergies of the combination. Intangible assets resulting from the acquisitions of entities accounted for using the acquisition method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and trade names, developed technologies and other intangible assets. The fair values of these identified intangible assets are based upon expected future cash flows or income, which take into consideration certain assumptions such as customer turnover, trade names and patent lives. These determinations are primarily based upon the Company’s historical experience and expected benefit of each intangible asset. If it is determined that such assumptions are not accurate, then the resulting change will impact the fair value of the intangible asset. Identifiable intangible assets are amortized over the period of estimated economic benefit, which ranges from one to 20 years. The changes in carrying amounts of goodwill for the years ended December 31, 2020 and 2019 are as follows (in thousands):
| Fax and Martech |  | Voice, Backup, Security and CPP |  | Total Cloud Services |  | Digital Media |  | Consolidated
Balance as of January 1, 2019 | $ | 366,270 |  |  | $ | 300,718 |  |  | $ | 666,988 |  |  | $ | 713,388 |  |  | $ | 1,380,376 |
Goodwill acquired (Note 4) | 31,672 |  |  | 179,293 |  |  | 210,965 |  |  | 42,131 |  |  | 253,096 |
Purchase Accounting Adjustments (1) | 177 |  |  | — |  |  | 177 |  |  | (858) |  |  | (681) |
Foreign exchange translation | (331) |  |  | 73 |  |  | (258) |  |  | 500 |  |  | 242 |
Balance as of December 31, 2019 | $ | 397,788 |  |  | $ | 480,084 |  |  | $ | 877,872 |  |  | $ | 755,161 |  |  | $ | 1,633,033 |
Goodwill acquired (Note 4) | 21,738 |  |  | 19,056 |  |  | 40,794 |  |  | 177,951 |  |  | 218,745 |
Goodwill written off related to sale of a business (2) | — |  |  | (4,751) |  |  | (4,751) |  |  | — |  |  | (4,751) |
Purchase accounting adjustments (1) | — |  |  | (2,130) |  |  | (2,130) |  |  | 9,721 |  |  | 7,591 |
Foreign exchange translation | 5,945 |  |  | 6,766 |  |  | 12,711 |  |  | 101 |  |  | 12,812 |
Balance as of December 31, 2020 | $ | 425,471 |  |  | $ | 499,025 |  |  | $ | 924,496 |  |  | $ | 942,934 |  |  | $ | 1,867,430 |
(1) Purchase accounting adjustments relate to adjustments to goodwill in connection with prior year business acquisitions (see Note 4 - Business Acquisitions). (2) On August 31, 2020, in a cash transaction, the Company sold certain of its Voice assets in Australia and New Zealand which resulted in $4.8 million of goodwill being written off (see Note 6 - Sale of Assets). Intangible assets are summarized as of December 31, 2020 and 2019 as follows (in thousands): Intangible Assets with Indefinite Lives:
| 2020 |  | 2019
Trade names | $ | 27,460 |  |  | $ | 27,379 |
Other | 4,329 |  |  | 4,306 |
Total | $ | 31,789 |  |  | $ | 31,685 |
Intangible Assets Subject to Amortization: As of December 31, 2020, intangible assets subject to amortization relate primarily to the following (in thousands):
| Weighted-Average Amortization Period |  | Historical Cost |  | Accumulated Amortization |  | Net
Trade names | 10.0 years |  | $ | 260,715 |  |  | $ | 100,273 |  |  | $ | 160,442 |
Patent and patent licenses | 5.5 years |  | 67,980 |  |  | 66,964 |  |  | 1,016 |
Customer relationships (1) | 8.0 years |  | 848,875 |  |  | 471,681 |  |  | 377,194 |
Other purchased intangibles | 4.3 years |  | 436,352 |  |  | 265,224 |  |  | 171,128 |
Total |  |  | $ | 1,613,922 |  |  | $ | 904,142 |  |  | $ | 709,780 |
(1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, despite the overall life of the asset. During the year ended December 31, 2020, the Company acquired RetailMeNot, Inc. (see Note 4 - Business Acquisitions). The identified intangible assets were recognized as part of the acquisition and their respective estimated weighted average amortizations were as follows (in thousands):
| Weighted-Average Amortization Period |  | Fair Value
Trade names | 10.0 years |  | $ | 62,940 |
Customer relationships | 7.0 years |  | 198,840 |
Other purchased intangibles | 3.0 years |  | 42,610 |
Total |  |  | $ | 304,390 |
During the year ended December 31, 2020, the Company completed acquisitions which were individually immaterial. The identified intangible assets were recognized as part of all 2020 acquisitions and their respective estimated weighted average amortizations were as follows (in thousands):
| Weighted-Average Amortization Period |  | Fair Value
Trade names | 9.7 years |  | $ | 67,670 |
Customer relationships | 6.9 years |  | 222,582 |
Other purchased intangibles | 3.3 years |  | 56,802 |
Total |  |  | $ | 347,054 |
As of December 31, 2019, intangible assets subject to amortization relate primarily to the following (in thousands):
| Weighted-Average Amortization Period |  | Historical Cost |  | Accumulated Amortization |  | Net
Trade names | 10.2 years |  | $ | 193,202 |  |  | $ | 82,552 |  |  | $ | 110,650 |
Patent and patent licenses | 6.5 years |  | 67,921 |  |  | 63,143 |  |  | 4,778 |
Customer relationships (1) | 8.5 years |  | 630,730 |  |  | 392,228 |  |  | 238,502 |
Other purchased intangibles | 4.3 years |  | 383,195 |  |  | 212,257 |  |  | 170,938 |
Total |  |  | $ | 1,275,048 |  |  | $ | 750,180 |  |  | $ | 524,868 |
(1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, despite the overall life of the asset. Expected amortization expenses for intangible assets subject to amortization at December 31, 2020 are as follows (in thousands):
Fiscal Year: |
2021 | $ | 181,679 |
2022 | 134,289 |
2023 | 108,410 |
2024 | 77,965 |
2025 | 55,118 |
Thereafter | 152,319 |
Total expected amortization expense | $ | 709,780 |
Amortization expense was $164.9 million, $180.6 million and $145.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.

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- 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 http://asc.fasb.org/topic&trid=2144416 + Details
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