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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Changes in goodwill for the years ended December 31, 2022 and 2021, are as follows:
|  | Sales |  |  | Marketing |  |  | Total |
(in thousands) |  |  |  |  |  |  |  |  |
Gross carrying amount as of January 1, 2021 |  | $ | 2,114,378 |  |  | $ | 700,961 |  |  | $ | 2,815,339 |
Accumulated impairment charge |  |  | (652,000 | ) |  |  | — |  |  |  | (652,000 | )
Balance at January 1, 2021 |  |  | 1,462,378 |  |  |  | 700,961 |  |  |  | 2,163,339 |
Acquisitions |  |  | 32,087 |  |  |  | 13,315 |  |  |  | 45,402 |
Measurement period adjustments |  |  | 179 |  |  |  | (1,043 | ) |  |  | (864 | )
Foreign exchange translation effects |  |  | (1,873 | ) |  |  | — |  |  |  | (1,873 | )
Balance at December 31, 2021 |  |  | 1,492,771 |  |  |  | 713,233 |  |  |  | 2,206,004 |
Acquisitions |  |  | 5,732 |  |  |  | 52,855 |  |  |  | 58,587 |
Measurement period adjustments |  |  | (392 | ) |  |  | — |  |  |  | (392 | )
Impairment charge |  |  | (1,275,719 | ) |  |  | (91,804 | ) |  |  | (1,367,523 | )
Foreign exchange translation effects |  |  | (8,727 | ) |  |  | — |  |  |  | (8,727 | )
Balance at December 31, 2022 |  | $ | 213,665 |  |  | $ | 674,284 |  |  | $ | 887,949 |
During the fiscal year ended December 31, 2022, the Company recognized non-cash goodwill impairment charges of $1,275.7 million and $91.8 million related to the Company’s sales and marketing reporting units, respectively, as a result of the Company’s annual evaluation of goodwill impairment test (as further described in Note 1 above). Accumulated impairment losses to goodwill were $2,019.5 million and $652.0 million as of December 31, 2022 and 2021, respectively. The following tables set forth information for intangible assets:
|  |  |  | December 31, 2022 |
(amounts 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 |  | $ | 2,488,802 |  |  | $ | 1,338,381 |  |  | $ | — |  |  | $ | 1,150,421 |
Trade names |  | 10 years |  |  | 97,009 |  |  |  | 47,986 |  |  |  | — |  |  |  | 49,023 |
Developed technology |  | 6 years |  |  | 7,500 |  |  |  | 4,441 |  |  |  | — |  |  |  | 3,059 |
Total finite-lived intangible assets(1) |  |  | 2,593,311 |  |  |  | 1,390,808 |  |  |  | — |  |  |  | 1,202,503 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  |  |  |  | 1,480,000 |  |  |  | — |  |  |  | 785,000 |  |  |  | 695,000 |
Total other intangible assets |  |  |  | $ | 4,073,311 |  |  | $ | 1,390,808 |  |  | $ | 785,000 |  |  | $ | 1,897,503 |
|  |  |  | December 31, 2021 |
(amounts 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 |  | $ | 2,480,167 |  |  | $ | 1,158,732 |  |  | $ | — |  |  | $ | 1,321,435 |
Trade names |  | 8 years |  |  | 138,206 |  |  |  | 78,355 |  |  |  | — |  |  |  | 59,851 |
Developed technology |  | 5 years |  |  | 13,260 |  |  |  | 8,206 |  |  |  | — |  |  |  | 5,054 |
Covenant not to compete |  | 5 years |  |  | 6,100 |  |  |  | 4,926 |  |  |  | — |  |  |  | 1,174 |
Total finite-lived intangible assets(1) |  |  | 2,637,733 |  |  |  | 1,250,219 |  |  |  | — |  |  |  | 1,387,514 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  |  |  |  | 1,480,000 |  |  |  | — |  |  |  | 580,000 |  |  |  | 900,000 |
Total other intangible assets |  | $ | 4,117,733 |  |  | $ | 1,250,219 |  |  | $ | 580,000 |  |  | $ | 2,287,514 |
(1) Intangible assets, along with the related accumulated amortization, are removed from the table above at the end of the fiscal year they become fully amortized.
As of December 31, 2022, estimated future amortization expenses of the Company’s existing intangible assets are as follows:
(in thousands) |  |  |
2023 |  | $ | 197,995 |
2024 |  |  | 196,626 |
2025 |  |  | 190,571 |
2026 |  |  | 186,582 |
2027 |  |  | 182,030 |
Thereafter |  |  | 248,699 |
Total amortization expense |  | $ | 1,202,503 |
The Company records all intangible assets at their respective fair values and assesses the estimated useful lives of the assets at the time of acquisition. 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, 2022 and 2021, the Company recorded intangible assets of $25.6 million and $35.6 million, respectively. Amortization expenses included in the Consolidated Statements of Operations and Comprehensive (Loss) Income for the years ended December 31, 2022, 2021 and 2020 were $200.8 million, $198.9 million, and $191.2 million, respectively. During the year ended December 31, 2022, the Company recognized non-cash intangible asset impairment charges of $146.0 million and $59.0 million related to the Company's indefinite-lived sales and marketing trade names, respectively, in connection with the Company’s annual intangible asset impairment test on October 1, 2022 (as further described in Note 1 above). No impairment related to the Company’s intangible assets was recorded for the years ended December 31, 2021, and 2020. During fiscal year 2022, the Company concluded the impact of challenges in the labor market and continued inflationary pressures was an indicator that impairment may exist related to its client relationship intangible assets and as a result, the Company performed a recoverability test and determined that there was no impairment. No impairment related to the Company’s client relationship intangible assets was recorded during the years ended December 31, 2021, and 2020.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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