GOODWILL AND LONG-LIVED ASSETS

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

We performed an assessment in the first and second quarters of 2023 and did not identify a triggering event that would have required us to test for impairment for the periods.

We determined the impact to our business from the new variant of COVID-19 during the first quarter of 2022 and a downward revision of our forecast during the second quarter of 2022 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 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. Our interim quantitative assessment for the first quarter of 2022 did not identify any goodwill or long-lived asset impairment. For the three and six months ended June 30, 2022, we recognized $35.4 million of goodwill impairment within our International reporting unit and $8.8 million of long-lived asset impairment related to certain asset groups within our International reporting unit. 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 reporting unit for the three and six months ended June 30, 2022.

Goodwill

As of June 30, 2023 and December 31, 2022, the balance of our goodwill was $178.7 million. There was no goodwill activity during the six months ended June 30, 2023. All goodwill is within our North America segment, which had a negative carrying value as of June 30, 2023.

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.

The following table summarizes intangible assets as of June 30, 2023 and December 31, 2022 (in thousands):


	June 30, 2023						December 31, 2022
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Merchant relationships	$	18,699	$	16,470	$	2,229	$	17,912	$	14,327	$	3,585
Trade names	9,441		8,590		851		9,340		8,382		958
Patents	14,024		7,107		6,917		13,341		6,701		6,640
Other intangible assets	16,709		12,138		4,571		17,517		11,059		6,458
Total	$	58,873	$	44,305	$	14,568	$	58,110	$	40,469	$	17,641

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 $2.1 million for the three months ended June 30, 2023 and 2022 and $4.2 million and $4.3 million for the six months ended June 30, 2023 and 2022. As of June 30, 2023, estimated future amortization expense related to intangible assets is as follows (in thousands):


Remaining amounts in 2023	$	3,608
2024	4,316
2025	2,805
2026	1,934
2027	1,257
Thereafter	648
Total	$	14,568