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GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended
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Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $498,377 and $466,638 as of September 30, 2024 and December 31, 2023, respectively. The increase in goodwill during the nine months ended September 30, 2024 was primarily due to $56,028 from the acquisition of Nogin in the All Other category and $1,431 from an immaterial acquisition in the Financial Consulting segment, partially offset by $26,681 from goodwill impairment in the Consumer Products segment. The changes in the carrying amount of goodwill for the nine months ended September 30, 2024 were as follows:
| Capital Markets Segment |  | Wealth Management Segment |  |  |  | Financial Consulting Segment |  | Communications Segment |  | Consumer Products Segment |  | All Other |  | Total |  |  |  |
Balance as of December 31, 2023 | $ | 162,018 |  |  | $ | 51,195 |  |  |  |  | $ | 29,597 |  |  | $ | 193,867 |  |  | $ | 26,681 |  |  | $ | 3,280 |  |  | $ | 466,638 |  |  |  |  |
Acquisition of other businesses | — |  |  | — |  |  |  |  | 1,431 |  |  | — |  |  | — |  |  | 56,028 |  |  | 57,459 |  |  |  |  |
Goodwill impairment | — |  |  | — |  |  |  |  | — |  |  | — |  |  | (26,681) |  |  | — |  |  | (26,681) |  |  |  |  |
Other | (532) |  |  | — |  |  |  |  | (143) |  |  | — |  |  | — |  |  | 1,636 |  |  | 961 |  |  |  |  |
Balance as of September 30, 2024 | $ | 161,486 |  |  | $ | 51,195 |  |  |  |  | $ | 30,885 |  |  | $ | 193,867 |  |  | $ | — |  |  | $ | 60,944 |  |  | $ | 498,377 |  |  |  |  |
During the nine months ended September 30, 2024, the changes in goodwill included $1,636 of Nogin purchase price accounting adjustments, $(532) related to the sale of certain assets and $(143) of foreign currency translation amounts. Intangible assets consisted of the following:
|  |  | As of September 30, 2024 |  | As of December 31, 2023
| Estimated Useful Life in Years |  | Gross Carrying Value |  | Accumulated Amortization |  | Intangibles Net |  | Gross Carrying Value |  | Accumulated Amortization |  | Intangibles Net
Amortizable assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships | 1 to 16 |  | $ | 272,330 |  |  | $ | (129,721) |  |  | $ | 142,609 |  |  | $ | 263,721 |  |  | $ | (108,644) |  |  | $ | 155,077 |
Domain names | 7 |  | 175 |  |  | (173) |  |  | 2 |  |  | 185 |  |  | (183) |  |  | 2 |
Advertising relationships | 8 |  | 100 |  |  | (100) |  |  | — |  |  | 100 |  |  | (94) |  |  | 6 |
Internally developed software and other intangibles | 0.5 to 10 |  | 32,935 |  |  | (22,506) |  |  | 10,429 |  |  | 28,985 |  |  | (19,613) |  |  | 9,372 |
Trademarks | 3 to 10 |  | 24,028 |  |  | (9,983) |  |  | 14,045 |  |  | 20,821 |  |  | (8,133) |  |  | 12,688 |
Total |  |  | 329,568 |  |  | (162,483) |  |  | 167,085 |  |  | 313,812 |  |  | (136,667) |  |  | 177,145 |
Non-amortizable assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Tradenames |  |  | 20,100 |  |  | — |  |  | 20,100 |  |  | 21,100 |  |  | — |  |  | 21,100 |
Total intangible assets |  |  | $ | 349,668 |  |  | $ | (162,483) |  |  | $ | 187,185 |  |  | $ | 334,912 |  |  | $ | (136,667) |  |  | $ | 198,245 |
Amortization expense was $8,446 and $10,191 during the three months ended September 30, 2024 and 2023, respectively, and $26,665 and $30,478 during the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, estimated future amortization expense was $8,677, $31,672, $28,922, $26,694, and $23,188 for the years ended December 31, 2024 (remaining three months), 2025, 2026, 2027 and 2028, respectively. The estimated future amortization expense after December 31, 2028 was $47,932. The Company performs impairment tests for goodwill as of December 31 of each year and between annual impairment tests if an event occurs or circumstances change that would more likely than not reduce the fair values of the Company’s reporting units below their carrying values. As a result of the current financial performance of the Company’s Targus subsidiary which is included in the Consumer Products segment as well as current market conditions that continued to exist in the personal computer market for computers and accessories, the Company updated its long-term forecasts. The Company performed an interim goodwill impairment quantitative assessment as of June 30, 2024, and based on the results of the analysis, the Company recorded a non-cash impairment charge of $27,681 consisting of a goodwill impairment charge of $26,681 and a tradename impairment charge of $1,000, which was recorded in impairment of goodwill and tradenames in the accompanying condensed consolidated statements of operations during the nine months ended September 30, 2024. Goodwill and tradename of the Company’s Targus subsidiary was remeasured at fair value on a nonrecurring basis as of June 30, 2024 which resulted in the fair value of goodwill being reduced to zero and the estimated fair value of tradename was $18,500 as of June 30, 2024. The estimated fair value of the Company’s Targus reporting unit was calculated using a weighted-average of values determined from an income approach and a market approach. The income approach involves estimating the fair value of the reporting unit by discounting its estimated future cash flows using a discount rate that would be consistent with a market participant’s assumption. The market approach bases the fair value measurement on information obtained from observed stock prices of public companies and recent merger and acquisition transaction data of comparable entities. In order to estimate the fair value of goodwill and tradename, management must make certain estimates and assumptions that affect the total fair value of the reporting unit including, among other things, an assessment of market conditions, projected cash flows, discount rates, and growth rates. The inputs for the fair value calculations of the reporting unit included a 4% growth rate to calculate the terminal value, a discount rate of 16%, and with respect to tradenames, a royalty rate of 2%. Management’s estimates of projected cash flows related to the reporting unit include, but are not limited to, future earnings of the reporting unit using revenue growth rates, gross margins, and other cost assumptions consistent with the reporting unit's historical trends, and working capital requirements and future capital expenditures necessary to fund future operations. The assumptions in the fair value measurement reflect the current market environment, industry-specific factors and company-specific factors.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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