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Identifiable Intangible Assets from Acquisitions | 9 Months Ended
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Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract] |
Identifiable Intangible Assets from Acquisitions | (11) Identifiable Intangible Assets from Acquisitions For the three months ended March 31, 2020, our stock price was impacted by volatility in the U.S. financial markets as a result of the rapid spread of the coronavirus globally which has resulted in increased travel restrictions and disruption and shutdown of businesses, and traded below the then book value for an extended period of time. As a result, the Company performed an interim impairment test of our long-lived intangible assets using an undiscounted cash flow analysis pursuant to ASC 360, Property, Plant, and Equipment to determine if the cash flows expected to be generated by the asset groups over the estimated remaining useful life of the primary assets were sufficient to recover the carrying value of the asset groups, which were determined to be at the acquisition level. Based on this analysis, which included evaluating various cash flow scenarios, the undiscounted cash flows were not sufficient to recover the carrying value of the groups. As a result, the Company was required to determine the fair value of each asset group. To estimate the fair value, the Company utilized both the cost recovery and income approach, which is based on a discounted cash flow (DCF) analysis and calculates the fair value by estimating the after-tax cash flows attributable to the asset group and then discounting the after-tax cash flows to present value using a risk-adjusted discount rate. Assumptions used in the DCF require significant judgment, including judgment about appropriate discount rates and terminal values, growth rates, and the amount and timing of expected future cash flows. The forecasted cash flows are based on the Company's most recent strategic plan and for periods beyond the strategic plan and the Company's estimates were based on assumed growth rates expected as of the measurement date. The Company believes its assumptions were consistent with the plans and estimates that a market participant would use to manage the business. Based on the results of this testing, the Company recorded pre-tax non-cash impairment totaling $5.0 million in the first quarter of 2020 relating to customer relationships, technologies, non-compete agreements and tradenames. These charges are reflected in the Company’s Condensed Consolidated Statement of Operations for the three-month period ended March 31, 2020. Identifiable intangible assets from acquisitions consisted of the following (in thousands):
|  | As of December 31, 2020 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Impairment |  |  | Net Carrying Amount |
Customer relationships |  | $ | 13,018 |  |  | $ | (4,693 | ) |  | $ | (3,430 | ) |  | $ | 4,895 |
Technologies |  |  | 9,369 |  |  |  | (4,731 | ) |  |  | (1,062 | ) |  |  | 3,576 |
Non-compete agreements |  |  | 3,409 |  |  |  | (2,413 | ) |  |  | (346 | ) |  |  | 650 |
Tradenames |  |  | 734 |  |  |  | (538 | ) |  |  | (121 | ) |  |  | 75 |
Total identifiable intangible assets from acquisition |  | $ | 26,530 |  |  | $ | (12,375 | ) |  | $ | (4,959 | ) |  | $ | 9,196 |
|  | As of September 30, 2021 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Impairment |  |  | Net Carrying Amount |
Customer relationships |  | $ | 13,018 |  |  | $ | (6,303 | ) |  | $ | (3,430 | ) |  | $ | 3,285 |
Technologies |  |  | 9,369 |  |  |  | (6,547 | ) |  |  | (1,062 | ) |  |  | 1,760 |
Non-compete agreements |  |  | 3,409 |  |  |  | (2,626 | ) |  |  | (346 | ) |  | $ | 437 |
Tradenames |  |  | 734 |  |  |  | (607 | ) |  |  | (121 | ) |  |  | 6 |
Total identifiable intangible assets from acquisition |  | $ | 26,530 |  |  | $ | (16,083 | ) |  | $ | (4,959 | ) |  | $ | 5,488 |
Amortizable intangible assets are amortized on a straight-line basis over their useful lives. Customer relationships, acquired technologies, tradenames, and non-compete agreements have a weighted average useful life from date of purchase of 5 years, 3 years, 2 years, 1-2 years, respectively. Aggregate amortization expense incurred by the Company for the nine months ended September 30, 2020 and 2021 was approximately $4.2 million and $3.7 million, respectively. Aggregate amortization expense incurred by the Company for the three months ended September 30, 2020 and 2021 was approximately $1.2 million and $1.1 million, respectively. Based upon the current amount of acquired identifiable intangible assets subject to amortization, the estimated remaining amortization expense for the next five years is as follows: $904,000 in 2021, $2.3 million in 2022, $2.2 million in 2023, and $704,000 in 2024.

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