Goodwill and Other Intangible Assets, net

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, net

4.	Goodwill and Other Intangible Assets, net

Goodwill related to our June 15, 2015 acquisition of Hudson IT totaled $8.4 million. Goodwill related to our July 13, 2017 acquisition of the services division of InfoTrellis totaled $27.4 million. Goodwill related to our October 1, 2020 acquisition of AmberLeaf totaled $6.4 million. During 2018, the Company recorded a goodwill impairment related to the InfoTrellis acquisition of $9.7 million. The impairment was attributable to a lower revenue growth rates than expected at closing. Based upon the business performance subsequent to the acquisition date, we reduced our near-term outlook and lowered our revenue projections from original expectations. Also, we factored into our current assessment of discounted cash flows, additional investments to the sales organization and other necessary investments which were not initially considered.

A reconciliation of the beginning and ending amounts of goodwill by operating segment for the three years ended December 31, 2020 is as follows:


	Years Ended December 31,
	2020		2019		2018
	(Amounts in thousands)
IT Staffing Services:
Beginning balance	$	8,427	$	8,427	$	8,427
Goodwill recorded		—		—		—
Impairment		—		—		—

Ending balance	$	8,427	$	8,427	$	8,427


	Years Ended December 31,
	2020		2019		2018
	(Amounts in thousands)
Data and Analytics Services:
Beginning balance	$	17,679	$	17,679	$	27,417
Goodwill recorded		6,404		—		—
Impairment		—		—		(9,738	)

Ending balance	$	24,083	$	17,679	$	17,679

The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Identifiable intangible assets were comprised of the following as of December 31, 2020 and 2019:


	As of December 31, 2020
(Amounts in thousands)	Amortization Period (In Years)		Gross Carrying Value		Accumulative Amortization		Net Carrying Value
IT Staffing Services:
Client relationships		12	$	7,999	$	3,694	$	4,305
Covenant-not-to-compete		5		319		319		—
Trade name		3		249		249		—
Data and Analytics Services:
Client relationships		12		19,641		4,866		14,775
Covenant-not-to-compete		5		1,201		548		653
Trade name		5		1,711		869		842
Technology		7		1,979		624		1,355

Total Intangible Assets			$	33,099	$	11,169	$	21,930


	As of December 31, 2019
(Amounts in thousands)	Amortization Period (In Years)		Gross Carrying Value		Accumulative Amortization		Net Carrying Value
IT Staffing Services:
Client relationships		12	$	7,999	$	3,027	$	4,972
Covenant-not-to-compete		5		319		290		29
Trade name		3		249		249		—
Data and Analytics Services:
Client relationships		12		16,671		3,415		13,256
Covenant-not-to-compete		5		761		374		387
Trade name		5		1,221		600		621
Technology		7		1,209		424		785

Total Intangible Assets			$	28,429	$	8,379	$	20,050

Amortization expense for the years ended December 31, 2020, 2019 and 2018 totaled $2.8 million, $2.7 million and $2.7 million, respectively and is included in selling, general and administrative expenses in the Consolidated Statement of Operations.

The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2021 through 2025 is as follows:


	Years Ended December 31,
	2021		2022		2023		2024		2025
	(Amounts in thousands)
Amortization expense	$	3,168	$	2,987	$	2,772	$	2,693	$	2,553