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GOODWILL AND LONG-LIVED ASSETS | 9 Months Ended
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Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND LONG-LIVED ASSETS | GOODWILL AND LONG-LIVED ASSETS The following table summarizes goodwill activity by segment for the nine months ended September 30, 2021 (in thousands):
| North America |  | International |  | Consolidated
Balance as of December 31, 2020 | $ | 178,685 |  |  | $ | 36,014 |  |  | $ | 214,699 |
Other (1) | — |  |  | 3,776 |  |  | 3,776 |
Foreign currency translation | — |  |  | (1,576) |  |  | (1,576) |
Balance as of September 30, 2021 | $ | 178,685 |  |  | $ | 38,214 |  |  | $ | 216,899 |
(1)Represents the reclassification between Right-of-use assets - operating leases, net and Goodwill due to an adjustment in the allocation of impairments recorded in 2020 between those two accounts. 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 third quarter 2021, we determined the prolonged recovery from the pandemic, particularly in our International segment, and the sustained decrease in our stock price required us to evaluate our goodwill and long-lived assets for impairment. We determined there was no impairment for goodwill; however, we recognized impairment in our right-of-use assets and leasehold improvements under our restructuring plan as noted below. In order to evaluate goodwill for impairment in the third quarter 2021, we compared the fair values of our two reporting units, North America and International, to their carrying values. In determining the fair values of our reporting units, we used the discounted cash flow method under the income approach and the market multiple valuation approach that use Level 3 inputs. The fair value of the reporting units exceeded the carrying value, therefore we concluded that goodwill was not impaired for either of our reporting units during the third quarter 2021. Due to the circumstances described above, during the third quarter 2021, we evaluated our long-lived assets for impairment. We determined the carrying amount for certain right-of-use assets and leasehold improvements related to our restructuring plan were not fully recoverable due to changes in sublease assumptions. These assets, classified as Level 3 inputs, were written down to fair value based on the discounted cash flow method under the income approach for the three and nine months ended September 30, 2021. See Note 9, Restructuring and Related Charges, for more information on our restructuring and related charges impairments and details in the table below. During the first quarter 2020, the significant deterioration in our financial performance due to the disruption in our operations from COVID-19 and the sustained decreased in our stock price required us to evaluate our goodwill and long-lived assets for impairment. In determining fair values of our reporting units, we used the discounted cash flow method and the market multiple valuation approach that use Level 3 inputs. For the nine months ended September 30, 2020, we recognized $109.5 million of goodwill impairment and $22.4 million of long-lived asset impairment within our International segment related to our EMEA operations. During the three and nine months ended September 30, 2020, we recognized long-lived asset impairments of $3.3 million and $17.2 million for certain asset groups due to actions taken under our restructuring plan. See Note 9, Restructuring and Related Charges, for additional information. 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. 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, 2021 and 2020 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Long-lived asset impairment: |  |  |  |  |  |  |
North America | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
International | — |  |  | — |  |  | — |  |  | 22,351 |
Total Long-lived asset impairment | — |  |  | — |  |  | — |  |  | 22,351 |
Restructuring and related charges: |  |  |  |  |  |  |
North America | 5,430 |  |  | 834 |  |  | 5,430 |  |  | 14,322 |
International | 2,221 |  |  | 2,462 |  |  | 2,221 |  |  | 2,877 |
Total Restructuring and related charges impairment | 7,651 |  |  | 3,296 |  |  | 7,651 |  |  | 17,199 |
Total impairment | $ | 7,651 |  |  | $ | 3,296 |  |  | $ | 7,651 |  |  | $ | 39,550 |
The following table summarizes impairment for long-lived assets and restructuring and related charges by asset type for the three and nine months ended September 30, 2021 and 2020 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Property, equipment and software, net |  |  |  |  |  |  |
Leasehold improvements | $ | 870 |  |  | $ | 191 |  |  | $ | 870 |  |  | $ | 7,749 |
Computer hardware | — |  |  | — |  |  | — |  |  | 2,842 |
Right-of-use assets - finance leases, net | — |  |  | 70 |  |  | — |  |  | 1,388 |
Internally-developed software | — |  |  | — |  |  | — |  |  | 2,988 |
Other Property, equipment and software, net | — |  |  | — |  |  | — |  |  | 929 |
Total Property, equipment and software, net | 870 |  |  | 261 |  |  | 870 |  |  | 15,896 |
Right-of-use assets - operating leases, net | 6,781 |  |  | 3,035 |  |  | 6,781 |  |  | 22,680 |
Intangible assets, net | — |  |  | — |  |  | — |  |  | 103 |
Other non-current assets | — |  |  | — |  |  | — |  |  | 871 |
Total long-lived assets | $ | 7,651 |  |  | $ | 3,296 |  |  | $ | 7,651 |  |  | $ | 39,550 |
The following table summarizes intangible assets as of September 30, 2021 and December 31, 2020 (in thousands):
| September 30, 2021 |  | December 31, 2020
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Merchant relationships | $ | 19,914 |  |  | $ | 11,662 |  |  | $ | 8,252 |  |  | $ | 20,208 |  |  | $ | 9,236 |  |  | $ | 10,972 |
Trade names | 9,597 |  |  | 8,132 |  |  | 1,465 |  |  | 9,651 |  |  | 7,921 |  |  | 1,730 |
Developed technology | 538 |  |  | 538 |  |  | — |  |  | 2,121 |  |  | 1,863 |  |  | 258 |
Patents | 12,225 |  |  | 5,462 |  |  | 6,763 |  |  | 10,813 |  |  | 4,697 |  |  | 6,116 |
Other intangible assets | 17,706 |  |  | 8,376 |  |  | 9,330 |  |  | 17,823 |  |  | 6,748 |  |  | 11,075 |
Total | $ | 59,980 |  |  | $ | 34,170 |  |  | $ | 25,810 |  |  | $ | 60,616 |  |  | $ | 30,465 |  |  | $ | 30,151 |
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 $2.1 million and $2.5 million for the three months ended September 30, 2021 and 2020 and $6.7 million and $7.4 million for the nine months ended September 30, 2021 and 2020. As of September 30, 2021, estimated future amortization expense related to intangible assets is as follows (in thousands):
Remaining amounts in 2021 | $ | 2,153 |
2022 | 8,398 |
2023 | 7,229 |
2024 | 3,544 |
2025 | 1,974 |
Thereafter | 2,512 |
Total | $ | 25,810 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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