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Note 5 - Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 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 six months ended June 30, 2022 were as follows:

(in thousands)	*Six Months Ended June 30, 2022*
Balance as of the beginning of the period	$	400,610
Goodwill acquired during the period		-
Goodwill written off during the period		(630	)
Foreign currency translation adjustments		(9,626	)
Balance as of the end of the period	$	390,354

Goodwill of $0.6 million was written off as of June 30, 2022, as a result of the Company's decision to close the Japan manufacturing facility and exit the Japan market. The Japan business was in operations through the second quarter of 2022 and the assets are expected to be available for sale during the second half of 2022. 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 June 30, 2022 and December 31, 2021 were as follows:

	*June 30, 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	$	(759	)	$	171	$	930	$	(713	)	$	217	10.0	1.8
Non-compete agreement	822		(423		)	399		842		(363		)	479		2.0 - 5.0	2.5
Software technology	13,229		(5,699		)	7,530		13,229		(5,014		)	8,215		10.0	6.0
Software platform	25,777		(3,239		)	22,538		26,725		(2,262		)	24,463		12.0	10.6
Tradenames	346		(167		)	179		359		(114		)	245		3.0	1.6
Customer relationships	12,174		(8,965		)	3,209		12,252		(7,873		)	4,379		3.0 - 9.0	1.3
Total intangible assets	$	53,278	$	(19,252	)	$	34,026	$	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 $2.0 and $0.9 million as of June 30, 2022 and December 31, 2021, respectively. Amortization expense for intangible assets was $1.5 million for each of the three months ended June 30, 2022 and 2021, and $3.1 million and $3.0 million for the six months ended June 30, 2022 and 2021, respectively.

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	$	3,029
2023		5,855
2024		3,706
2025		3,608
2026		3,508
Thereafter		14,320
Total estimated amortization expense	$	34,026