XML 26 R11.htm IDEA: XBRL DOCUMENT
v3.22.2

GOODWILL AND ACQUIRED INTANGIBLES | 6 Months Ended
--- | ---
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND ACQUIRED INTANGIBLES | GOODWILL AND ACQUIRED INTANGIBLES The changes in the carrying amount of goodwill for the six months ended June 30, 2022 are as follows (in thousands):
| Cardlytics Platform |  | Bridg Platform |  | Consolidated
Balance as of December 31, 2021 | $ | 205,690 |  |  | $ | 536,826 |  |  | $ | 742,516 |
Goodwill additions due to acquisition of Entertainment | 5,062 |  |  | — |  |  | 5,062 |
Measurement period adjustments | (61) |  |  | 1,445 |  |  | 1,384 |
Goodwill impairments | — |  |  | (83,149) |  |  | (83,149) |
Balance as of June 30, 2022 | $ | 210,691 |  |  | $ | 455,122 |  |  | $ | 665,813 |
As a result of the sustained decline in our stock price during the three months ended June 30, 2022, we determined that it was necessary to perform an interim impairment test for goodwill as of June 30, 2022. The impairment test included determining whether the estimated fair value of each reporting unit exceeds its carrying value. If the carrying value exceeds the fair value of the reporting unit, the amount of impairment would equal the excess carrying value. As a result of our impairment test, we determined that the carrying value of the Bridg Platform reporting unit exceeded its fair value, and consequently, we recognized a goodwill impairment of $83.1 million. The methods of determining fair value of the reporting units includes a combination between the income approach and the market approach. Key assumptions in applying the income approach includes determining appropriate revenue growth rates and margins, the timing of expected future cash flows and applying an appropriate discount rate that addresses the risk associated with the uncertainty of expected future cash flows. Key assumptions in applying the market approach includes determining appropriate guideline peer groups and public transaction revenue multiples. We believe that our procedures for determining fair value for each reporting unit are reasonable and consistent with current market conditions as of the testing date. However, markets are currently volatile and future developments are difficult to predict. If the markets that impact our business deteriorates, we could recognize further goodwill or other impairment charges. Acquired intangible assets subject to amortization as of June 30, 2022 were as follows:
|  | Cost |  | Accumulated Amortization |  | Net |  | Weighted Average Remaining Useful Life
|  | (in thousands) |  | (in years)
Trade name |  | $ | 3,500 |  |  | $ | (1,349) |  |  | $ | 2,151 |  |  | 1.8
Developed technology |  | 91,700 |  |  | (18,733) |  |  | 72,967 |  |  | 4.8
Merchant relationships |  | 40,300 |  |  | (9,102) |  |  | 31,198 |  |  | 3.7
Partner relationships |  | 2,000 |  |  | (378) |  |  | 1,622 |  |  | 5.7
Card-linked subscriber user base |  | 17,000 |  |  | (4,503) |  |  | 12,497 |  |  | 3.7
Total other intangible assets |  | $ | 154,500 |  |  | $ | (34,065) |  |  | $ | 120,435 |  |  |
Amortization expense of acquired intangibles during the three and six months ended June 30, 2022 was $7.2 million and $14.4 million, respectively. Acquired intangible assets subject to amortization as of December 31, 2021 were as follows:
|  | Cost |  | Accumulated Amortization |  | Net |  | Weighted Average Remaining Useful Life
|  | (in thousands) |  | (in years)
Trade name |  | $ | 2,700 |  |  | $ | (753) |  |  | $ | 1,947 |  |  | 2.1
Developed technology |  | 91,000 |  |  | (11,026) |  |  | 79,974 |  |  | 5.3
Merchant relationships |  | 32,000 |  |  | (4,900) |  |  | 27,100 |  |  | 4.2
Partner relationships |  | 2,000 |  |  | (235) |  |  | 1,765 |  |  | 6.2
Card-linked subscriber user base |  | 17,000 |  |  | (2,798) |  |  | 14,202 |  |  | 4.2
Total other intangible assets |  | $ | 144,700 |  |  | $ | (19,712) |  |  | $ | 124,988 |  |  |
As of June 30, 2022, we expect amortization expense in future periods to be as follows (in thousands):
|  | Amount
2022 (remainder of year) |  | $ | 14,379 |
2023 |  | 28,695 |
2024 |  | 27,976 |
2025 |  | 27,336 |
2026 |  | 17,596 |
Thereafter |  | 4,453 |
Total expected future amortization expense |  | $ | 120,435 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration