XML 18 R9.htm IDEA: XBRL DOCUMENT

GOODWILL AND LONG-LIVED ASSETS

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND LONG-LIVED ASSETSDuring the first quarter of 2022, we determined the impact to our business from the new variant of COVID-19 required us to evaluate our goodwill and long-lived assets for impairment and in the second quarter of 2022, we determined a downward revision of our forecast required us to evaluate our goodwill and long-lived assets for impairment. In order to evaluate goodwill and long-lived assets for impairment, we compared the fair values of our two reporting units, North America and International, and asset groups to their carrying values. In determining the fair values of our reporting units and asset groups, we used the discounted cash flow method under the income approach that uses Level 3 inputs. As a result of the interim quantitative assessments of goodwill and long-lived assets, we did not identify any goodwill or long-lived asset impairment for the three months ended March 31, 2022. For the three and six months ended June 30, 2022, we recognized $35.4 million of goodwill impairment within our International reporting unit, representing a full impairment of goodwill for that reporting unit. We also recognized $8.8 million of long-lived asset impairment related to certain asset groups within our International segment for the three and six months ended June 30, 2022, which is recorded in Long-lived asset impairment in the Condensed Consolidated Statements of Operations. We also determined that the

carrying amount of certain right-of-use assets related to our 2020 restructuring plan were not fully recoverable and recognized impairment of $1.2 million within our International segment for the three and six months ended June 30, 2022, which is recorded in Restructuring and related charges in the Condensed Consolidated Statements of Operations. See Note 9, Restructuring and Related Charges, for additional information.

Goodwill

The following table summarizes goodwill activity by segment for the six months ended June 30, 2022 (in thousands):


	North America		International (1)		Consolidated
Balance as of December 31, 2021	$	178,685	$	37,708	$	216,393
Impairment	—		(35,424)		(35,424)
Foreign currency translation	—		(2,284)		(2,284)
Balance as of June 30, 2022	$	178,685	$	—	$	178,685

(1)As of December 31, 2021 and June 30, 2022, the International reporting unit had a negative carrying value.

Long-Lived Assets

The following table summarizes long-lived asset impairment by asset type for the three and six months ended June 30, 2022 (in thousands):


	Three and Six Months Ended June 30, 2022
Property, equipment and software, net
Leasehold improvements	$	1,632
Computer hardware	1,323
Other property, equipment and software, net	416
Total Property, equipment and software, net	3,371
Right-of-use assets - operating leases, net (1)	6,620
Total long-lived asset impairment	$	9,991

(1)Includes right-of-use asset impairment of $1.2 million presented within Restructuring and related charges during the three and six months ended June 30, 2022. See Note 9, Restructuring and Related Charges, for more information.

The following table summarizes intangible assets as of June 30, 2022 and December 31, 2021 (in thousands):


	June 30, 2022						December 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Merchant relationships	$	17,961	$	12,827	$	5,134	$	19,976	$	12,554	$	7,422
Trade names	9,346		8,241		1,105		9,604		8,215		1,389
Patents	13,113		6,207		6,906		12,455		5,712		6,743
Other intangible assets	17,518		9,911		7,607		17,573		8,817		8,756
Total	$	57,938	$	37,186	$	20,752	$	59,608	$	35,298	$	24,310

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 $2.3 million for the three months ended June 30, 2022 and 2021 and $4.3 million and $4.6 million for the six months ended June 30, 2022 and 2021. As of June 30, 2022, estimated future amortization expense related to intangible assets is as follows (in thousands):


Remaining amounts in 2022	$	4,191
2023	7,330
2024	3,850
2025	2,373
2026	1,511
Thereafter	1,497
Total	$	20,752