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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

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

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.