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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsGoodwill 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 twenty years. The changes in carrying amounts of goodwill for the years ended December 31, 2021 and 2020 are as follows (in thousands):
|  | Digital Media |  | Cybersecurity and Martech |  | Consolidated
Balance as of January 1, 2020 |  | $ | 755,161 |  |  | $ | 557,940 |  |  | $ | 1,313,101 |
Goodwill acquired (Note 4) |  | 177,951 |  |  | 24,950 |  |  | 202,901 |
Goodwill removed due to sale of businesses (2) |  | — |  |  | (4,751) |  |  | (4,751) |
Purchase accounting adjustments (1) |  | 9,721 |  |  | (2,130) |  |  | 7,591 |
Foreign exchange translation |  | 101 |  |  | 6,057 |  |  | 6,158 |
Balance as of December 31, 2020 |  | $ | 942,934 |  |  | $ | 582,066 |  |  | $ | 1,525,000 |
Goodwill acquired (Note 4) |  | 55,704 |  |  | 41,328 |  |  | 97,032 |
Goodwill removed due to sale of businesses (3) |  | — |  |  | (50,277) |  |  | (50,277) |
Goodwill impairment(4) |  | — |  |  | (32,629) |  |  | (32,629) |
Purchase accounting adjustments (1) |  | (1,437) |  |  | 505 |  |  | (932) |
Foreign exchange translation |  | (542) |  |  | (6,197) |  |  | (6,739) |
Balance as of December 31, 2021 |  | $ | 996,659 |  |  | $ | 534,796 |  |  | $ | 1,531,455 |
(1) Purchase accounting adjustments relate to measurement period adjustments to goodwill in connection with prior 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 - Discontinued Operations and Dispositions). (3) 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 and on September 17, 2021, the Company sold certain of its B2B Backup assets which resulted in $49.0 million of goodwill being removed in connection with the sale (see Note 6 - Discontinued Operations and Dispositions). (4) During the year ended December 31, 2021, the Company had an impairment to goodwill of $32.6 million in connection with certain B2B Backup assets The following table presents the gross carrying amount of goodwill and accumulated impairment charges as of December 31, 2021, and 2020.
| December 31, 2021 |  | December 31, 2020
| Gross Carrying Amount |  | Accumulated Impairment Charges |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Impairment Charges |  | Net Book Value
Cybersecurity and Martech | $ | 567,425 |  |  | $ | 32,629 |  |  | $ | 534,796 |  |  | $ | 582,066 |  |  | $ | — |  |  | $ | 582,066 |
Digital Media | 996,659 |  |  | — |  |  | 996,659 |  |  | 942,934 |  |  | — |  |  | 942,934 |
Total Goodwill | $ | 1,564,084 |  |  | $ | 32,629 |  |  | $ | 1,531,455 |  |  | $ | 1,525,000 |  |  | $ | — |  |  | $ | 1,525,000 |
Intangible Assets Subject to Amortization: As of December 31, 2021, intangible assets subject to amortization relate primarily to the following (in thousands):
| Weighted-Average Amortization Period |  | Historical Cost |  | Accumulated Amortization |  | Net
Trade names | 9.7 years |  | $ | 250,418 |  |  | $ | 102,657 |  |  | $ | 147,761 |
Customer relationships (1) | 8.1 years |  | 673,847 |  |  | 398,396 |  |  | 275,451 |
Other purchased intangibles | 9.3 years |  | 467,028 |  |  | 317,515 |  |  | 149,513 |
Total |  |  | $ | 1,391,293 |  |  | $ | 818,568 |  |  | $ | 572,725 |
(1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace at which the assets’ 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. During the year ended December 31, 2021, the Company acquired SEOmoz (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 | 5.0 years |  | $ | 7,406 |
Customer relationships | 5.2 years |  | 5,000 |
Other purchased intangibles | 5.0 years |  | 22,777 |
Total |  |  | $ | 35,183 |
During the year ended December 31, 2021, the Company completed other acquisitions which were individually immaterial. The identified intangible assets were recognized as part of all 2021 acquisitions and their respective estimated weighted average amortizations were as follows (in thousands):
| Weighted-Average Amortization Period |  | Fair Value
Trade names | 3.7 years |  | $ | 8,943 |
Customer relationships | 6.8 years |  | 16,945 |
Other purchased intangibles | 3.6 years |  | 16,117 |
Total |  |  | $ | 42,005 |
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 |  | $ | 247,189 |  |  | $ | 88,636 |  |  | $ | 158,553 |
Customer relationships (1) | 8.0 years |  | 746,330 |  |  | 382,815 |  |  | 363,515 |
Other purchased intangibles | 9.7 years |  | 503,195 |  |  | 328,403 |  |  | 174,792 |
Total |  |  | $ | 1,496,714 |  |  | $ | 799,854 |  |  | $ | 696,860 |
(1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace at which the assets’ 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. Expected amortization expenses for intangible assets subject to amortization at December 31, 2021 are as follows (in thousands):
Fiscal Year: |
2022 | $ | 148,268 |
2023 | 126,458 |
2024 | 82,499 |
2025 | 81,285 |
2026 | 65,253 |
Thereafter | 68,962 |
Total expected amortization expense | $ | 572,725 |
Amortization expense was $185.7 million, $156.4 million and $173.8 million for the years ended December 31, 2021, 2020 and 2019, respectively.

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