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GOODWILL AND LONG-LIVED ASSETS | 9 Months Ended
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Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND LONG-LIVED ASSETS | GOODWILL AND LONG-LIVED ASSETS During the three and nine months ended September 30, 2022 we evaluated goodwill and long-lived assets for impairment, due to the events described below, which indicated that the carrying amount of our assets or asset groups was not recoverable. In order to evaluate goodwill and long-lived assets for impairment, we compared the fair value of our two reporting units, North America and International, and our 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. During the third quarter of 2022, we determined that the carrying amount of one of our right-of-use assets related to our 2020 Restructuring Plan may not be fully recoverable due to collectability of sublease income, and recognized impairment within our North America segment. See details in the table below and Note 9, Restructuring and Related Charges, for more information. During 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. As a result of our interim quantitative assessment, we recognized goodwill impairment within our International reporting unit, representing a full impairment of goodwill for that reporting unit. We also recognized long-lived asset impairment related to certain asset groups within our International segment. We also determined that the carrying amount of certain right-of-use assets within our International segment related to our 2020 Restructuring Plan were not fully recoverable and recognized impairment. See details in the table below and Note 9, Restructuring and Related Charges, for more information. During 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. Our interim quantitative assessment for the first quarter of 2022 did not identify any goodwill or long-lived asset impairment. During the third quarter of 2021, we recognized impairment for our right-of-use assets and leasehold improvements under our 2020 Restructuring Plan. See details in the table below and Note 9, Restructuring and Related Charges, for more information. Goodwill The following table summarizes goodwill activity by segment for the nine months ended September 30, 2022 (in thousands):
| North America |  | International (1) |  | Consolidated
Balance as of December 31, 2021 | $ | 178,685 |  |  | $ | 37,708 |  |  | $ | 216,393 |
Goodwill impairment | — |  |  | (35,424) |  |  | (35,424) |
Foreign currency translation | — |  |  | (2,284) |  |  | (2,284) |
Balance as of September 30, 2022 | $ | 178,685 |  |  | $ | — |  |  | $ | 178,685 |
(1)As of December 31, 2021, the International reporting unit had a negative carrying value. Long-Lived Assets The following table summarizes impairment charges presented within the following line items on the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Long-lived asset impairment |  |  |  |  |  |  |
North America | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
International | — |  |  | — |  |  | 8,811 |  |  | — |
Total Long-lived asset impairment | — |  |  | — |  |  | 8,811 |  |  | — |
Restructuring and related charges |  |  |  |  |  |  |
North America | 1,769 |  |  | 5,430 |  |  | 1,769 |  |  | 5,430 |
International | — |  |  | 2,221 |  |  | 1,180 |  |  | 2,221 |
Total Restructuring and related charges | 1,769 |  |  | 7,651 |  |  | 2,949 |  |  | 7,651 |
Total impairment | $ | 1,769 |  |  | $ | 7,651 |  |  | $ | 11,760 |  |  | $ | 7,651 |
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, 2022 and 2021 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Property, equipment and software, net |  |  |  |  |  |  |
Leasehold improvements | $ | — |  |  | $ | 870 |  |  | $ | 1,632 |  |  | $ | 870 |
Computer hardware | — |  |  | — |  |  | 1,323 |  |  | — |
Other property, equipment and software, net | — |  |  | — |  |  | 416 |  |  | — |
Total Property, equipment and software, net | — |  |  | 870 |  |  | 3,371 |  |  | 870 |
Right-of-use assets - operating leases, net | 1,769 |  |  | 6,781 |  |  | 8,389 |  |  | 6,781 |
Total long-lived asset impairment | $ | 1,769 |  |  | $ | 7,651 |  |  | $ | 11,760 |  |  | $ | 7,651 |
The following table summarizes intangible assets as of September 30, 2022 and December 31, 2021 (in thousands):
| September 30, 2022 |  | December 31, 2021
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Merchant relationships | $ | 16,512 |  |  | $ | 12,500 |  |  | $ | 4,012 |  |  | $ | 19,976 |  |  | $ | 12,554 |  |  | $ | 7,422 |
Trade names | 9,160 |  |  | 8,211 |  |  | 949 |  |  | 9,604 |  |  | 8,215 |  |  | 1,389 |
Patents | 13,303 |  |  | 6,502 |  |  | 6,801 |  |  | 12,455 |  |  | 5,712 |  |  | 6,743 |
Other intangible assets | 17,479 |  |  | 10,446 |  |  | 7,033 |  |  | 17,573 |  |  | 8,817 |  |  | 8,756 |
Total | $ | 56,454 |  |  | $ | 37,659 |  |  | $ | 18,795 |  |  | $ | 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 for the three months ended September 30, 2022 and 2021 and $6.4 million and $6.7 million for the nine months ended September 30, 2022 and 2021. As of September 30, 2022, estimated future amortization expense related to intangible assets is as follows (in thousands):
Remaining amounts in 2022 | $ | 2,047 |
2023 | 7,205 |
2024 | 3,877 |
2025 | 2,469 |
2026 | 1,622 |
Thereafter | 1,575 |
Total | $ | 18,795 |

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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 https://asc.fasb.org/topic&trid=2144416 + Details
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