Annual report pursuant to Section 13 and 15(d)

GOODWILL AND INTANGIBLE ASSETS

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GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
The Company’s goodwill balance consists of the following:
(In thousands, USD) Amount
December 31, 2020 $ 384,202 
Currency translation (787)
December 31, 2021 $ 383,415 
Acquisition 44,859 
Impairment (58,074)
Currency translation (494)
December 31, 2022 $ 369,706 

The Company tests goodwill for impairment on an annual basis on October 1st and between annual tests whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

During the fourth quarter of 2022, the Company identified circumstances subsequent to the annual goodwill test that would more likely than not reduce the fair value of the reporting unit (the entity) below its carrying value. The Company performed qualitative and quantitative goodwill impairment tests during the third and the fourth quarters of 2022. These impairment indicators included increased interest rates impacting our weighted average cost of capital, an increase in the Company's specific risk premium, an increase in debt free net working capital needs and a sustained decline in the Company's share price from the third quarter. In addition to the market data, the valuation techniques utilized level 3 inputs such as the Company’s internal forecasts of its future results, cash flows and its weighted average cost of capital. As a result, the Company concluded that the carrying value of its reporting unit exceeded the estimated fair value of the
reporting unit and recorded a goodwill impairment loss of $58.1 million, which represents the accumulated impairment loss as of December 31, 2022. The fair value of the reporting was estimated by equally weighing the results of the income approach and the market approach.
Key assumptions used in the impairment analysis included projected revenue growth rates, discount rates, and market factors such as earnings multiples from comparable publicly traded companies. The impairment loss has been recognized in our statement of operations as a goodwill impairment loss from operations for the year ended December 31, 2022. The Company did not record a goodwill impairment loss in any prior periods.
The Company’s other intangible assets consist of the following:
(In thousands, USD) Carrying Gross
Amount		 Accumulated
Amortization 		Net Carrying Value
Customer relationships $ 327,317  $ (197,483) $ 129,834 
Technology 46,978  (42,348) 4,630 
Carrier contracts 70,210  (47,483) 22,727 
Trademarks 16,214  (11,060) 5,154 
Internally developed computer software 72,063  (41,904) 30,159 
Total as of December 31, 2022 $ 532,782  $ (340,278) $ 192,504 
(In thousands, USD) Carrying Gross
Amount		 Accumulated
Amortization 		Net Carrying Value
Customer relationships $ 305,648  $ (168,519) $ 137,129 
Technology 45,983  (37,529) 8,454 
Carrier contracts 65,700  (40,488) 25,212 
Trademarks 15,733  (9,221) 6,512 
Internally developed computer software 59,906  (34,663) 25,243 
Total as of December 31, 2021 $ 492,970  $ (290,420) $ 202,550 
Amortization expense for the years ended December 31, 2022, and 2021, was $50.8 million, and $46.7 million, respectively.
The following table shows the weighted average remaining useful lives per intangible asset category as of December 31, 2022.
Years
Customer relationships 5.0
Technology 2.6
Carrier contracts 3.6
Trademarks 4.3
Internally developed computer software 4.2
The following table shows the estimated amortization expense for the next five years and thereafter as of December 31, 2022.
(In thousands, USD) Amount
2023 $ 49,657 
2024 45,932 
2025 43,206 
2026 28,607 
2027 9,645 
Thereafter 15,457 
Total $ 192,504