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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS We accounted for our historical acquisitions in accordance with ASC 805, Business Combinations. We recorded the amount exceeding the fair value of net assets acquired at the date of acquisition as goodwill. We recorded intangible assets apart from goodwill if the assets had contractual or other legal rights or if the assets could be separated and sold, transferred, licensed, rented or exchanged. Our goodwill relates to acquisitions from 2011 through 2020. In accordance with ASC 350, Intangibles-Goodwill and Other, we review and evaluate our long-lived assets, including intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that we may not recover their net book value. We test goodwill for impairment on an annual basis in the fourth fiscal quarter of each year, and between annual tests, if indicators of potential impairment exist, using a fair-value-based approach. We typically use an income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability). Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. During fiscal 2020, we determined that the estimated fair value of our reporting unit was greater than its carrying value. We determined this using the quantitative method. In addition, we also performed the income based approach discussed above and compared the market value of our common stock to our reporting unit’s carrying value noting its market value exceeded carrying value. Therefore, we had no impairment charge for 2020. During fiscal 2019, we determined that the estimated fair value of our reporting unit was less than its carrying value. Therefore, we compared the carrying value of the reporting unit to its fair value in order to determine if an impairment exists. In addition to performing the income based approach discussed above we compared the market value of our common stock to our reporting unit’s carrying value noting its carrying value exceeded market value. A non-cash, before-tax impairment charge of 35,060 was recognized to reduce the carrying amount of the goodwill to its estimated fair value as of December 31, 2019. There were no impairment indicators or triggering events during the first three quarters of 2019. The sale of our Workspace Management business in the fourth quarter led to an increase in the carrying value of the remaining business above its market value as of December 31, 2019. We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. We amortize intangible assets not considered to have an indefinite useful life using the straight-line method over their estimated period of benefit, which generally ranges from one to nine years. Each reporting period, we evaluate the estimated remaining useful life of intangible assets and assess whether events or changes in circumstances warrant a revision to the remaining period of amortization or indicate that impairment exists. In 2019, we disposed of certain trade names in relation to our rebranding efforts. The following table summarizes the changes in our goodwill:
Balance at Balance at December 31, 2018 | $ | 99,108 |  |
Goodwill recognized upon acquisition | 4,826 |  |
Adjustments to goodwill associated with acquisitions | (177) |  |
Impairment loss | (35,060) |  |
Balance at December 31, 2019 | 68,697 |  |
Goodwill recognized upon acquisition | 5,261 |  |
Balance at December 31, 2020 | $ | 73,958 |  |
The gross carrying amount and accumulated amortization of our intangible assets as of December 31, 2020 and 2019 are as follows:
Intangible Assets |  | Weighted Average Amortization Period (in Years) |  | 2020
|  | Gross |  | Accumulated Amortization |  | Net
Developed Technology |  | 6.6 |  | $ | 12,001 |  |  | $ | (7,608) |  |  | $ | 4,393 |
Customer Relationships |  | 8.9 |  | 88,310 |  |  | (28,898) |  |  | 59,412 |
Reseller Relationships |  | 7.0 |  | 853 |  |  | (853) |  |  | — |
Trade Names |  | 3.0 |  | 880 |  |  | (312) |  |  | 568 |
Noncompete Agreements |  | 5.2 |  | 1,032 |  |  | (853) |  |  | 179 |
|  | 8.5 |  | $ | 103,076 |  |  | $ | (38,524) |  |  | $ | 64,552 |
Intangible Assets |  | Weighted Average Amortization Period (in Years) |  | 2019
|  | Gross |  | Accumulated Amortization |  | Net
Developed Technology |  | 6.0 |  | $ | 10,001 |  |  | $ | (6,004) |  |  | $ | 3,997 |
Customer Relationships |  | 8.9 |  | 78,558 |  |  | (19,757) |  |  | 58,801 |
Reseller Relationships |  | 7.0 |  | 853 |  |  | (853) |  |  | — |
Trade Names |  | 3.0 |  | 780 |  |  | (78) |  |  | 702 |
Noncompete Agreements |  | 5.2 |  | 1,032 |  |  | (682) |  |  | 350 |
|  | 8.5 |  | $ | 91,224 |  |  | $ | (27,374) |  |  | $ | 63,850 |
We record amortization expense using the straight-line method over the estimated useful lives of the intangible assets, as noted above. Amortization expenses were $9,547 and $11,765 for 2020 and 2019, respectively, included in Operating Expenses. Amortization expenses recorded in Cost of Sales were $1,604 and $1,994 for 2020 and 2019, respectively. The following table summarizes the future estimated amortization expense relating to our intangible assets as of December 31, 2020
Year Ending |
2021 | $ | 11,601 |
2022 | 11,068 |
2023 | 9,942 |
2024 | 9,682 |
2025 | 8,896 |
Thereafter | 13,363 |
Total | $ | 64,552 |

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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 http://asc.fasb.org/topic&trid=2144416 + Details
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