Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

3. Goodwill and Intangible Assets

Changes in goodwill for the years ended December 31, 2020 and 2019, are as follows:


(in thousands)	Sales			Marketing		Total
Gross carrying amount as of December 31, 2019	$	2,090,340		$	678,356	$	2,768,696
Accumulated impairment charge (1)		(652,000	)		—		(652,000	)

Balance at December 31, 2019	$	1,438,340		$	678,356	$	2,116,696

Acquisitions		20,788			22,605		43,393
Foreign exchange translation effects		3,250			—		3,250

Balance at December 31, 2020	$	1,462,378		$	700,961	$	2,163,339


(in thousands)	Sales			Marketing		Total
Gross carrying amount as of December 31, 2018	$	2,085,684		$	672,683	$	2,758,367
Accumulated impairment charge (1)		(652,000	)		—		(652,000	)

Balance at December 31, 2018	$	1,433,684		$	672,683	$	2,106,367

Acquisitions		2,948			4,403		7,351
Foreign exchange translation effects		(418	)		1,270		852
Foreign exchange translation effects		2,126			—		2,126

Balance at December 31, 2019	$	1,438,340		$	678,356	$	2,116,696

(1)	During the fiscal year ended December 31, 2018, the Company recognized a non-cash goodwill impairment charge of $652.0 million related to the Company’s sales reporting unit as a result of the Company’s annual evaluation of goodwill impairment test.

The following tables set forth information for intangible assets:


			December 31, 2020
(in thousands)	Weighted Average Useful Life		Gross Carrying Value		Accumulated Amortization		Accumulated Impairment Charges		Net Carrying Value
Finite-lived intangible assets:
Client relationships		14 years	$	2,455,360	$	977,140	$	—	$	1,478,220
Trade names		8 years		134,220		66,209		—		68,011
Developed technology		5 years		10,160		5,989		—		4,171
Covenant not to compete		5 years		6,100		3,706		—		2,394

Total finite-lived intangible assets				2,605,840		1,053,044		—		1,552,796

Indefinite-lived intangible assets:
Trade names				1,480,000		—		580,000		900,000

Total other intangible assets			$	4,085,840	$	1,053,044	$	580,000	$	2,452,796


			December 31, 2019
(in thousands)	Weighted Average Useful Life		Gross Carrying Value		Accumulated Amortization		Accumulated Impairment Charges		Net Carrying Value
Finite-lived intangible assets:
Client relationships		14 years	$	2,408,573	$	798,153	$	—	$	1,610,420
Trade names		8 years		132,844		52,485		—		80,359
Developed technology		5 years		10,160		3,957		—		6,203
Covenant not to compete		5 years		6,100		2,486		—		3,614

Total finite-lived intangible assets				2,557,677		857,081		—		1,700,596

Indefinite-lived intangible assets:
Trade names				1,480,000		—		580,000		900,000

Total other intangible assets			$	4,037,677	$	857,081	$	580,000	$	2,600,596

As of December 31, 2020, estimated future amortization expenses of the Company’s existing intangible assets are as follows:


(in thousands)
2021	$	195,704
2022		193,094
2023		189,512
2024		188,549
2025		183,401
Thereafter		602,536

Total amortization expense	$	1,552,796

The Company recorded all intangible assets at their respective fair values and assessed the useful lives of the assets. Client relationships were valued using the multi-period excess earnings method under the income approach. The values of client relationships are generally regarded as the estimated economic benefit derived from the incremental revenues and related cash flow as a direct result of the client relationships in place versus having to replicate them. Further, the Company evaluated the legal, regulatory, contractual, competitive, economic or other factors in determining the useful life. Trade names were valued using the relief-from-royalty method under the income approach. This method relies on the premise that, in lieu of ownership, a company would be willing to pay a royalty to obtain access to the use and benefits of the trade names. The Company has considered its sales and marketing trade names related to the 2014 Topco Acquisition to be indefinite, as there is no foreseeable limit on the period of time over which such trade names are expected to contribute to the cash flows of the reporting entity. Further, the Company evaluated legal, regulatory, contractual, competitive, economic and other factors in determining the useful life.

In connection with the acquisitions during the years ended December 31, 2020 and 2019, the Company recorded intangible assets of $42.5 million

and $10.4 million, respectively. Amortization expenses included in the

Consolidated Statements of Operations and Comprehensive Loss for the years ended

December 31, 2020, 2019 and 2018 were $191.2 million, $189.9 million, and $188.8 million, respectively.

No impairment related to the Company’s intangible assets was recorded for the year

ended December 31, 2020 and 2019. During the fiscal year ended December 31, 2018, the Company recognized a

non-cash

intangible asset impairment charge of $580.0 million related to the Company’s indefinite-lived sales trade name in connection with the annual intangible impairment test (as further described in Note 1,

Organization and Significant Account Policies