Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

4. Goodwill and Other Intangible Assets

Changes in the Company’s goodwill balance for the six months ended June 30, 2022 are summarized in the table below:


($ in thousands)	Goodwill
Balance at December 31, 2021	$	457,472
Acquired in business combinations	48,768

Adjustment related to prior year business combinations	1,466
Adjustment related to finalization of current year business combinations	(226)
Foreign currency translation adjustment and other	(14,999)
Balance at June 30, 2022	$	492,481

Net intangible assets include the estimated acquisition-date fair values of customer relationships, marketing-related assets, developed technology, and non-compete agreements that the Company recorded as part of its business acquisitions.

The following is a summary of the Company’s intangible assets, net (in thousands):


	Estimated Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
June 30, 2022:
Customer relationships	1-10	$	372,591	$	142,416	$	230,175
Trade name	1.5-10	9,857		6,175		3,682
Developed technology	4-9	93,064		50,184		42,880
Non-compete agreements	3	1,148		1,148		—
Favorable Leases	6.3	287		23		264
Total intangible assets		$	476,947	$	199,946	$	277,001


	Estimated Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
December 31, 2021:
Customer relationships	1-10	$	358,943	$	126,329	$	232,614
Trade name	1.5-10	9,714		5,752		3,962
Developed technology	4-9	88,548		45,204		43,344
Non-compete agreements	3	1,148		1,148		—
Total intangible assets		$	458,353	$	178,433	$	279,920

The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in either a diminished fair value or revised useful life. Management recorded no impairments of intangible assets or goodwill during the three and six months ended June 30, 2022 or the year ended December 31, 2021. Total amortization expense was $13.5 million and $12.7 million during the three months ended June 30, 2022 and June 30, 2021, respectively, and $27.4 million and $24.7 million during the six months ended June 30, 2022 and June 30, 2021, respectively.

As of June 30, 2022, the estimated annual amortization expense for the next five years and thereafter is as follows (in thousands):


	Amortization Expense
Year ending December 31:
Remainder of 2022	$	25,803
2023	50,546
2024	48,060
2025	44,823
2026	41,871
2027 and thereafter	65,898
Total	$	277,001