GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company records goodwill when an acquisition is made and the purchase price is greater than the fair value assigned to the underlying separately-identifiable tangible and intangible assets acquired and the liabilities assumed. All of the Company's goodwill was allocated to the Company's Consumer Payments reporting unit at June 30, 2021 and December 31, 2020.

The Company considered the market conditions for triggering events including those generated by the COVID-19 pandemic and concluded that there were no indicators of impairment for the goodwill of the Consumer Payments reporting unit for the three months and six months ended June 30, 2021.

The Company tests goodwill for impairment on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit may be below its carrying value. The Company will continue to monitor triggering events including the economic impact of COVID-19 on its ongoing assessment of goodwill. The Company expects to perform its next annual goodwill impairment test during the fourth quarter of 2021 using market data and discounted cash flow analysis. The Company concluded there was no impairment as of June 30, 2021 or December 31, 2020. As such, there was no accumulated impairment loss as of June 30, 2021 and December 31, 2020.

See Note 4, Acquisitions, for information about goodwill recorded in the three months ended June 30, 2021 related to the business combination.

Other Intangible Assets

The Company's other intangible assets include acquired merchant portfolios, customer relationships, ISO relationships, trade names, technology, and residual buyouts. As of June 30, 2021 and December 31, 2020, intangible assets consisted of the following:


(in thousands)	June 30, 2021		December 31, 2020
Other intangible assets:
Merchant portfolios	$	73,062	$	55,816
Customer relationships	40,740		40,740
Residual buyouts	162,312		116,112
Non-compete agreements	3,390		3,390
Trade names	2,870		2,870
Technology	14,390		14,390
ISO relationships	15,200		15,200
Total gross carrying value	311,964		248,518
Less accumulated amortization:
Merchant portfolios	(24,586)		(19,471)
Customer relationships	(31,837)		(30,267)
Residual buyouts	(81,009)		(72,659)
Non-compete agreements	(3,390)		(3,390)
Trade names	(1,770)		(1,651)
Technology	(14,000)		(13,951)
ISO relationships	(7,783)		(7,319)
Total accumulated amortization	(164,375)		(148,708)
Accumulated allowance for impairment	(1,753)		(1,753)
Net carrying value	$	145,836	$	98,057

Amortization expense for finite-lived intangible assets was $8.7 million and $15.7 million for the three months and six months ended June 30, 2021, respectively, and $8.4 million and $16.9 million for the three months and six months ended June 30, 2020, respectively. Amortization expense for future periods could differ due to new intangible asset acquisitions, changes in useful lives of existing intangible assets, and other relevant events or circumstances.

The Company tests intangible assets for impairment when events occur or circumstances indicate that the fair value of an intangible asset or group of intangible assets may be impaired. In the Company's Consumer Payments segment, a residual buyout intangible asset with a net carrying value of $2.2 million was deemed to be impaired at December 31, 2020. The fair value of this intangible asset was estimated to be approximately $0.5 million, resulting in the recognition of an impairment charge of $1.8 million. This impairment was the result of diminished cash flows generated by the merchant portfolio.

The Company also considered the market conditions generated by the COVID-19 pandemic and concluded that there were no additional impairment indicators present at June 30, 2021.