Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Note 3 — Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair values of the tangible and identifiable intangible net assets acquired. Goodwill is not amortized; however, it is required to be tested for impairment annually, which requires assessment of the potential impairment at the reporting unit level. Reporting units are determined based on the components of the Company's operating segments that constitute a business for which discrete financial information is available and for which operating results are regularly reviewed by segment management. Testing for impairment is also required on an interim basis if an event or circumstance indicates it is more likely than not an impairment loss has been incurred.

The Company performed its annual impairment testing as of November 30, 2022 utilizing a qualitative assessment to determine if it was more likely than not that the fair values of each of its reporting units was less than their respective carrying values and concluded that no impairments existed. Subsequent to completing the annual test and through September 30, 2023, there were no events or circumstances that required an interim impairment test. Accordingly, as of September 30, 2023, the Company had no accumulated goodwill impairment losses. Approximately $8.1 million of goodwill is allocated to the Company’s Consulting reporting unit, which had a negative carrying value as of the date of the last test.

The change in the carrying amount of goodwill for the nine months ended September 30, 2023 is summarized as follows (in thousands):


Balance at December 31, 2022	$	242,149
Foreign currency translation adjustments		(88	)
Balance at September 30, 2023	$	242,061

Finite-Lived Intangible Assets

The carrying values of finite-lived intangible assets are as follows (in thousands):


	September 30, 2023
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Amortizable intangible assets:
Customer relationships	$	77,776	$	40,125	$	37,651
Technology		16,241		15,328		913
Trademarks		12,477		10,698		1,779
Total	$	106,494	$	66,151	$	40,343


	December 31, 2022
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Amortizable intangible assets:
Customer relationships	$	77,786	$	33,805	$	43,981
Technology		16,803		14,696		2,107
Trademarks		12,472		9,056		3,416
Total	$	107,061	$	57,557	$	49,504

Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands):


2023 (remainder)	$	2,772
2024		9,903
2025		8,872
2026		8,391
2027		8,324
Thereafter		2,081
Total	$	40,343