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Goodwill and Intangible Assets | 6 Months Ended
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Jun. 30, 2021
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 six months ended June 30, 2021 are as follows (in thousands):
| Fax and Martech |  | Voice, Backup, Security and CPP |  | Total Cloud Services |  | Digital Media |  | Consolidated
Balance as of January 1, 2021 | $ | 425,471 |  |  | $ | 499,025 |  |  | $ | 924,496 |  |  | $ | 942,934 |  |  | $ | 1,867,430 |
Goodwill acquired (Note 4) | 39,519 |  |  | — |  |  | 39,519 |  |  | 13,494 |  |  | 53,013 |
Goodwill removed due to sale of a business (1) | — |  |  | (1,339) |  |  | (1,339) |  |  | — |  |  | (1,339) |
Goodwill reclassified to noncurrent assets held for sale (2) | — |  |  | (48,632) |  |  | (48,632) |  |  | — |  |  | (48,632) |
Goodwill impairment (3) | — |  |  | (32,629) |  |  | (32,629) |  |  | — |  |  | (32,629) |
Purchase accounting adjustments (4) | — |  |  | 47 |  |  | 47 |  |  | 2,603 |  |  | 2,650 |
Foreign exchange translation | (1,861) |  |  | (817) |  |  | (2,678) |  |  | (276) |  |  | (2,954) |
Balance as of June 30, 2021 | $ | 463,129 |  |  | $ | 415,655 |  |  | $ | 878,784 |  |  | $ | 958,755 |  |  | $ | 1,837,539 |
(1) On February 9, 2021, in a cash transaction, the Company sold certain of its Voice assets in the United Kingdom which resulted in $1.3 million of goodwill being removed in connection with this sale (see Note 6 - Assets Held for Sale). (2) During the six months ended June 30, 2021, the Company reclassified $48.6 million of goodwill to noncurrent assets held for sale in connection with certain B2B Backup assets. (see Note 6 - Assets Held for Sale). (3) During the second quarter of 2021, the Company had an impairment to goodwill of $32.6 million in connection with certain B2B Backup assets (see Note 6 - Assets Held for Sale). (4) Purchase accounting adjustments relate to measurement period adjustments to goodwill in connection with prior business acquisitions (see Note 4 - Business Acquisitions). Intangible Assets with Indefinite Lives: Intangible assets are summarized as of June 30, 2021 and December 31, 2020 as follows (in thousands):
| June 30, 2021 |  | December 31, 2020
Trade names | $ | 27,433 |  |  | $ | 27,460 |
Other | 4,321 |  |  | 4,329 |
Total | $ | 31,754 |  |  | $ | 31,789 |
Intangible Assets Subject to Amortization: As of June 30, 2021, intangible assets subject to amortization relate primarily to the following (in thousands):
| Weighted-Average Amortization Period |  | Historical Cost |  | Accumulated Amortization |  | Net
Trade names | 9.6 years |  | $ | 269,782 |  |  | $ | 109,994 |  |  | $ | 159,788 |
Patent and patent licenses | 5.5 years |  | 67,973 |  |  | 67,151 |  |  | 822 |
Customer relationships (1) | 8.0 years |  | 844,952 |  |  | 514,540 |  |  | 330,412 |
Other purchased intangibles | 4.3 years |  | 463,616 |  |  | 297,454 |  |  | 166,162 |
Total |  |  | $ | 1,646,323 |  |  | $ | 989,139 |  |  | $ | 657,184 |
(1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace at which the asset’s benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first 4 to 5 years, despite the overall life of the asset. 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 at which the asset’s benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first 4 to 5 years, despite the overall life of the asset. Amortization expense, included in general and administrative expense, approximated $48.0 million and $35.6 million for the three months ended June 30, 2021 and 2020, respectively, and $96.5 million and $74.4 million for the six months ended June 30, 2021 and 2020, respectively. Amortization expense is estimated to approximate $93.3 million, $146.6 million, $125.9 million, $79.3 million and $74.2 million for the remaining six months of fiscal year 2021 through fiscal year 2025, respectively, and $138.0 million thereafter through the duration of the amortization period.

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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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