GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes goodwill activity by segment for the years ended December 31, 2022 and 2021 (in thousands):


	North America		International (1)		Consolidated
Balance as of December 31, 2020	$	178,685	$	36,014	$	214,699
Other (2)	—		3,776		3,776
Foreign currency translation	—		(2,082)		(2,082)
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 December 31, 2022	$	178,685	$	—	$	178,685

(1)As of December 31, 2021, and 2020, the International reporting unit had a negative carrying value.

(2)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.

We evaluated goodwill for impairment, due to the events described below, which indicated that the carrying amount of certain reporting units' were in excess of their estimated fair value. In determining the fair values of our reporting units, we used the discounted cash flow method under the income approach that uses Level 3 inputs.

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 for impairment. Our interim quantitative assessment for the first quarter of 2022 did not identify any goodwill impairment.

During the second quarter of 2022, we determined a downward revision of our forecast required us to evaluate our goodwill 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 performed our annual goodwill impairment assessment as of October 1, 2022. Our annual assessment determined that no reporting units' carrying values were in excess of their estimated fair values and, therefore, we did not recognize goodwill impairment for either of our reporting units. During the fourth quarter of 2022, subsequent to our annual goodwill impairment assessment, we determined a further downward revision of our forecast required us to evaluate our goodwill for impairment. Our interim quantitative assessment did not identify any goodwill impairment.

During the third quarter of 2021, we determined the prolonged recovery from the COVID-19 pandemic and the sustained decrease in our stock price required us to evaluate our goodwill for impairment. Additionally, we performed our annual goodwill impairment assessment as of October 1, 2021. Our assessments determined that no reporting units' carrying values were in excess of their estimated fair values. Therefore, we did not recognize goodwill impairment for either of our reporting units during the year ended December 31, 2021.

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 for impairment, which resulted in goodwill impairment of $109.5 million within our International segment related to our EMEA operations. 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 represented 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, we determined that the likelihood of a goodwill impairment did not reach the more-likely-than-not threshold. Accordingly,

we concluded that goodwill related to those reporting units were not impaired and further quantitative testing was not required to be performed. Additionally, we performed our annual goodwill impairment assessment as of October 1, 2020. Our assessment determined that no reporting units' carrying values were in excess of their estimated fair values. Therefore, we did not recognize goodwill impairment for either of our reporting units for the annual impairment test during the year ended December 31, 2020.

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


	December 31, 2022						December 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Merchant relationships	17,912		14,327		3,585		19,976		12,554		7,422
Trade names	9,340		8,382		958		9,604		8,215		1,389
Patents	13,341		6,701		6,640		12,455		5,712		6,743
Other intangible assets	17,517		11,059		6,458		17,573		8,817		8,756
Total	$	58,110	$	40,469	$	17,641	$	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 from continuing operations related to intangible assets was $8.5 million, $8.9 million and $9.7 million for the years ended December 31, 2022, 2021 and 2020.

As of December 31, 2022, our estimated future amortization expense related to intangible assets is as follows (in thousands):


2023	$	7,550
2024	4,076
2025	2,601
2026	1,739
2027	1,066
Thereafter	609
Total	$	17,641