Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

4. Goodwill and Intangible Assets

Goodwill

The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020:


	Loss Adjusting			Crawford TPA Solutions			Platform Solutions			Total
	(In thousands)
Balance at December 31, 2019:
Goodwill	$	86,025		$	168,734		$	44,381		$	299,140
Accumulated impairment losses		(50,587	)		(159,424	)		(8,487	)		(218,498	)
Net goodwill		35,438			9,310			35,894			80,642
2020 Activity:
Goodwill of acquired businesses		2,644			2,857			—			5,501
Impairment of goodwill		(17,674	)		—			—			(17,674	)
Goodwill of disposed business		(1,990	)		—			—			(1,990	)
Foreign currency effects		79			12			(33	)		58
Balance at December 31, 2020:
Goodwill		86,758			171,603			44,348			302,709
Accumulated impairment losses		(68,261	)		(159,424	)		(8,487	)		(236,172	)
Net goodwill		18,497			12,179			35,861			66,537
2021 Activity:
Goodwill of acquired businesses		14,371			6,244			26,195			46,810
Adjustments to prior acquisitions		1,074			1,163			—			2,237
Foreign currency effects		358			452			132			942
Balance at December 31, 2021:
Goodwill		102,561			179,462			70,675			352,698
Accumulated impairment losses		(68,261	)		(159,424	)		(8,487	)		(236,172	)
Net goodwill	$	34,300		$	20,038		$	62,188		$	116,526

The Company recognized a non-cash goodwill impairment charge during the year ended December 31, 2020 totaling $17,674,000 related to the valuation of its former Crawford Claims Solutions reporting unit as a result of lower operating results and the overall decline in market conditions as a result of the COVID-19 pandemic. The Company recognized a non-cash goodwill impairment in the former Crawford Claims Solution reporting unit of $17,484,000 during the year ended December 31, 2019 due to lower forecasts in that reporting unit. These impairment charges did not affect the Company's liquidity and had no effect on the Company's compliance with the financial covenants under its Credit Facility.

Intangible Assets

The following is a summary of finite-lived intangible assets acquired through business acquisitions as of December 31, 2021 and 2020:


	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Weighted- Average Amortization Period
	(In thousands, except years)
December 31, 2021:
Customer relationships	$	160,652	$	(111,241	)	$	49,411	9.3 years
Technology-based		22,293		(11,547	)		10,746	6.4 years
Trade name		6,393		(2,169	)		4,224	7.0 years
Other		7,944		(5,706	)		2,238	4.6 years
Total	$	197,283	$	(130,663	)	$	66,619	8.2 years
December 31, 2020:
Customer relationships	$	131,948	$	(101,319	)	$	30,629	3.3 years
Technology-based		18,183		(10,174	)		8,009	6.5 years
Trade name		3,123		(1,737	)		1,386	6.0 years
Other		5,794		(5,489	)		305	10.1 years
Total	$	159,048	$	(118,719	)	$	40,329	6.7 years

Amortization of finite-lived intangible assets was $11,029,000, $11,653,000, and $11,277,000 for the years ended December 31, 2021, 2020, and 2019, respectively. These amortization expenses were excluded from segment operating earnings (see Note 13, "Segment and Geographic Information"). Intangible assets subject to amortization are amortized on a straight-line basis over lives ranging from 2 to 20 years.

At December 31, 2021, annual estimated aggregate amortization expense for intangible assets subject to amortization for the next five years is as follows:


	Annual Amortization Expense
Year Ending December 31,	(In thousands)
2022	$	8,224
2023		7,874
2024		7,715
2025		7,438
2026		7,146

The following is a summary of indefinite-lived intangible assets at December 31, 2021 and 2020:


	Gross Carrying Amount		Accumulated Impairments			Net Carrying Value
	(In thousands)
December 31, 2021:
Trade names	$	32,608	$	(1,656	)	$	30,952
December 31, 2020:
Trade names	$	32,503	$	(1,656	)	$	30,847