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GOODWILL AND LONG-LIVED ASSETS
 9 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND LONG-LIVED ASSETS GOODWILL AND LONG-LIVED ASSETS
In accordance with ASC Topic 350, Intangibles — Goodwill and Other, we evaluate goodwill for impairment annually on October 1 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. We also review our long-lived assets, such as property, equipment and software, right-of-use assets and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. During the first quarter 2020, we determined the significant deterioration in our financial performance due to the disruption in our operations from COVID-19 and the sustained decrease in our stock price required us to evaluate our goodwill and long-lived assets for impairment. During the second and third quarters 2020, we determined that the actions taken under our restructuring plan changed how we used certain long-lived assets such that the carrying amount of those long-lived assets may not be recoverable, which required us to evaluate those long-lived assets for impairment.
Future events and changing market conditions due to the impact of COVID-19 may require us to re-evaluate the estimates used in our fair value measurements, which could result in additional impairment of long-lived assets or goodwill in future periods that may have a material effect on our operating results.
Goodwill
In order to evaluate goodwill for impairment in the first quarter 2020, we compared the fair values of our three reporting units (North America, EMEA and Asia Pacific) to their carrying values. In determining fair values for our reporting units, we used the discounted cash flow method and the market multiple valuation approach that use Level 3 inputs. The significant estimates used in the discounted cash flow models are the risk-adjusted discount rates; forecasted revenue, cost of revenue and operating expenses; forecasted capital expenditures and working capital needs; weighted average cost of capital; rates of long-term growth; and income tax rates. These estimates considered the recent deterioration in financial performance of the reporting units as well as the anticipated rate of recovery, and implied risk premiums based on the market prices of our equity and debt as of the assessment date. The significant estimates used in the market multiple valuation approach include identifying business factors such as size, growth, profitability, risk and return on investment and assessing comparable revenue and earnings multiples. As a result of the interim quantitative assessment of goodwill in the first quarter 2020, we identified a partial impairment of goodwill in our EMEA reporting unit within the International segment and recognized goodwill impairment of $109.5 million. We did not recognize any goodwill impairment in our North America or Asia Pacific reporting units during the three months ended March 31, 2020.
During the second quarter 2020, we determined that we did not have a triggering event that required us to evaluate goodwill for impairment, and therefore we did not recognize goodwill impairment for any of our reporting units during the second quarter 2020.
During the third quarter 2020, we exited our operations in Japan and New Zealand, which represent the majority of the countries in our Asia Pacific reporting unit. As a result, we combined the remainder of the Asia Pacific reporting unit and the EMEA reporting unit into a single International reporting unit, consistent with how management reviews the operating results of the business. As a result of the change in reporting units, we performed a qualitative assessment of potential goodwill impairment for the new International reporting unit and performed separate qualitative assessments of potential goodwill impairment for our Asia Pacific and EMEA reporting units immediately prior to the change. Based on those assessments, which considered current market conditions and recent business performance, we determined that the likelihood of a goodwill impairment did not reach the more-likely-than not threshold. Accordingly, we concluded that goodwill relating to those reporting units was not impaired and further quantitative testing was not required to be performed. We did not identify any other triggering events that required us to evaluate goodwill impairment in our North America or International reporting units during the third quarter 2020 and therefore did not recognize goodwill impairment for any of our reporting units during the third quarter 2020.
The following table summarizes goodwill activity by segment for the nine months ended September 30, 2020 (in thousands):
North America
International (1)
Consolidated
Balance as of December 31, 2019$178,685 $146,332 $325,017 
Impairment loss— (109,486)(109,486)
Foreign currency translation— (2,522)(2,522)
Balance as of September 30, 2020$178,685 $34,324 $213,009 
(1)As of September 30, 2020, the International reporting unit had a negative carrying value.
Long-Lived Assets
Following our review of long-lived assets for impairment in the first quarter 2020, we recognized long-lived asset impairment of $22.4 million within our International segment related to our EMEA operations.
During the second quarter 2020, we recognized long-lived asset impairments of $13.5 million and $0.4 million within our North America and International segments for certain asset groups due to actions taken under our restructuring plan. During the third quarter 2020, we recognized long-lived asset impairments of $0.8 million and $2.5 million within our North America and International segments for certain asset groups due to actions taken under our restructuring plan. See Note 9, Restructuring and Related Charges, for more information.
The assets that we deemed impaired were written down to fair value based on the discounted cash flow method that uses Level 3 inputs. The significant estimates used in the discounted cash flow models are the risk-adjusted discount rates; forecasted revenue, cost of revenue and operating expenses; forecasted capital expenditures and working capital needs; weighted average cost of capital; rates of long-term growth; and income tax rates.
Impairment charges are presented within the following line items of the condensed consolidated statements of operations for the three and nine months ended September 30, 2020 (in thousands):

Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Long-lived asset impairment$— $22,351 
Restructuring and related charges3,296 17,199 
Total impairment$3,296 $39,550 

The following table summarizes impairment for long-lived assets and restructuring and related charges by asset type through September 30, 2020 (in thousands):
Long-Lived Asset CategoryImpairment
Property, equipment and software, net
Furniture and fixtures$413 
Leasehold improvements (1)
7,749 
Office equipment198 
Purchased software14 
Computer hardware2,842 
Right-of-use assets - finance leases, net
1,388 
Capitalized software304 
Internally-developed software2,988 
Total Property, equipment and software, net$15,896 
Right-of-use assets - operating leases, net (2)
22,680 
Intangible assets, net103 
Other non-current assets871 
Total long-lived assets$39,550 
(1)Includes long-lived asset impairment of $5.0 million presented within Restructuring and related charges during the nine months ended September 30, 2020. See Note 9, Restructuring and Related Charges, for more information.
(2)Includes right-of-use asset impairment of $12.2 million during the nine months ended September 30, 2020. See Note 9, Restructuring and Related Charges, for more information.
The following table summarizes intangible assets as of September 30, 2020 and December 31, 2019 (in thousands):
September 30, 2020December 31, 2019
Intangible Asset CategoryGross Carrying ValueAccumulated AmortizationNet Carrying ValueGross Carrying ValueAccumulated AmortizationNet Carrying Value
Customer relationships$16,200 $16,200 $— $16,200 $16,200 $— 
Merchant relationships21,668 10,557 11,111 22,193 8,268 13,925 
Trade names9,491 7,771 1,720 9,558 7,369 2,189 
Developed technology2,319 1,906 413 3,651 2,685 966 
Patents25,809 19,850 5,959 23,021 18,167 4,854 
Other intangible assets26,736 14,974 11,762 26,115 12,757 13,358 
Total$102,223 $71,258 $30,965 $100,738 $65,446 $35,292 
Amortization of intangible assets is computed using the straight-line method over their estimated useful lives, which range from 1 to 10 years. Amortization expense related to intangible assets was $2.5 million and $3.7 million for the three months ended September 30, 2020 and 2019 and $7.4 million and $11.4 million for the nine months ended September 30, 2020 and 2019. As of September 30, 2020, estimated future amortization expense related to intangible assets is as follows (in thousands):

Remaining amounts in 2020$2,312 
20218,173 
20227,577 
20236,426 
20242,840 
Thereafter3,637 
Total$30,965