GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes goodwill activity by segment for the years ended December 31, 2020 and 2019 (in thousands):


	North America		International (1)		Consolidated
Balance as of December 31, 2018	$	178,685	$	146,806	$	325,491
Foreign currency translation	—		(474)		(474)
Balance as of December 31, 2019	$	178,685	$	146,332	$	325,017
Impairment	—		(109,486)		(109,486)
Foreign currency translation	—		(832)		(832)
Balance as of December 31, 2020	$	178,685	$	36,014	$	214,699

(1)As of December 31, 2020, the International reporting unit had a negative carrying value.

Due to the triggering event and subsequent review of goodwill for impairment in the first quarter of 2020, as described in Note 3, COVID-19 Pandemic, we recognized goodwill impairment of $109.5 million within our International segment related to our EMEA operations. 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. We did not recognize any goodwill impairment in our North America or Asia Pacific reporting units.

During the third quarter 2020, we exited our operations in Japan and New Zealand as part of our restructuring plan, which represents 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 remainder of 2020. Additionally, we concluded that there was no goodwill impairment for either of our reporting units as a result of our annual goodwill impairment analysis. Therefore, we did not recognize additional goodwill impairment for any of our reporting units during the year ended December 31, 2020.

There was no goodwill impairment for the years ended December 31, 2019 and 2018.

The following table summarizes intangible assets as of December 31, 2020 and 2019 (in thousands):


	December 31, 2020						December 31, 2019
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Customer relationships	$	—	$	—	$	—	$	16,200	$	16,200	$	—
Merchant relationships	20,208		9,236		10,972		22,193		8,268		13,925
Trade names	9,651		7,921		1,730		9,558		7,369		2,189
Developed technology	2,121		1,863		258		3,651		2,685		966
Patents	10,813		4,697		6,116		23,021		18,167		4,854
Other intangible assets	17,823		6,748		11,075		26,115		12,757		13,358
Total	$	60,616	$	30,465	$	30,151	$	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 from continuing operations related to intangible assets was $9.7 million, $14.4 million and $14.5 million for the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020, our estimated future amortization expense related to intangible assets is as follows (in thousands):


2021	$	8,551
2022	7,955
2023	6,780
2024	3,065
2025	1,481
Thereafter	2,319
Total	$	30,151