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Note 5 - Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 – Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill during the three months ended March 31, 2022 were as follows:

(in thousands)	*Three Months Ended March 31, 2022*
Balance as of the beginning of the period	$	400,610
Goodwill acquired during the period		-
Foreign currency translation adjustments		(2,291	)
Balance as of the end of the period	$	398,319

Goodwill has been allocated to the acquired Hubs entities consisting of goodwill of €106.5 million in Europe and $151.3 million in the United States as of the date of the acquisition. The Euro denominated goodwill is translated at the end of each period using the current exchange rates resulting in a foreign currency translation adjustment that is recorded as a component of Other Comprehensive Income.

Intangible assets other than goodwill at March 31, 2022 and December 31, 2021 were as follows:

	*March 31, 2022*							*December 31, 2021*							*Useful*	*Weighted Average*
(in thousands)	*Gross*		*Accumulated Amortization*			*Net*		*Gross*		*Accumulated Amortization*			*Net*		*Life (in years)*	*Useful Life Remaining (in years)*
Intangible assets with finite lives:
Marketing assets	$	930	$	(736	)	$	194	$	930	$	(713	)	$	217	10.0	2.0
Non-compete agreement		836		(393	)		443		842		(363	)		479	2.0 - 5.0	2.7
Software technology		13,229		(5,356	)		7,873		13,229		(5,014	)		8,215	10.0	6.3
Software platform		26,432		(2,724	)		23,708		26,725		(2,262	)		24,463	12.0	10.8
Tradenames		355		(142	)		213		359		(114	)		245	3.0	1.8
Customer relationships		12,228		(8,425	)		3,803		12,252		(7,873	)		4,379	3.0 - 9.0	1.6
Total intangible assets	$	54,010	$	(17,776	)	$	36,234	$	54,337	$	(16,339	)	$	37,998

Intangible assets have been allocated to the acquired Hubs entities consisting of intangible assets of €11.6 million in Europe and $16.6 million in the United States as of the date of the acquisition. The Euro denominated intangible assets are translated at the end of each period using the current exchange rates resulting in a foreign currency translation adjustment that is recorded as a component of Other Comprehensive Income. Foreign currency losses related to intangible assets were $1.2 and $0.9 million as of March 31, 2022 and December 31, 2021, respectively. Amortization expense for intangible assets was $1.5 million for each of the three months ended March 31, 2022 and 2021.

Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets and current exchange rates is as follows:

(in thousands)	*Estimated Amortization Expense*
Remaining 2022	$	4,608
2023		5,940
2024		3,770
2025		3,670
2026		3,567
Thereafter		14,679
Total estimated amortization expense	$	36,234