Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

v3.22.1
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS
The Company’s goodwill balance consists of the following:
 
(in ‘000)
  
Amount
 
December 31, 2019
  
$
382,247
 
Measurement period adjustment
—
Integron
  
 
 (366
) 
Currency translation
  
 
 868
 
 
  
 
 
 
December 31, 2020
  
$
382,749
 
 
  
 
 
 
Currency translation
  
 
 (787
) 
 
  
 
 
 
December 31, 2021
  
$
381,962
 
 
  
 
 
 
The Company’s other intangible assets consist of the following:
 
(in ‘000)
  
Carrying Gross
Amount
 
  
Accumulated
Amortization
 
  
Net Carrying Value
 
Customer relationships
  
$
 306,732
 
  
$
 (168,679
) 
  
$
 138,053
 
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
  
$
494,054
 
  
$
(290,580
) 
  
$
203,474
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
(in ‘000)
  
Carrying Gross
Amount
 
  
Accumulated
Amortization
 
  
Net Carrying Value
 
Customer relationships
  
$
 307,356
 
  
$
 (143,230
) 
  
$
 164,126
 
Technology
  
 
 46,229
 
  
 
 (33,394
) 
  
 
 12,835
 
Carrier contracts
  
 
 65,700
 
  
 
 (33,918
) 
  
 
 31,782
 
Trademarks
  
 
15,828
 
  
 
(7,608
) 
  
 
8,220
 
Internally developed computer software
  
 
45,148
 
  
 
(21,908
) 
  
 
23,240
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total as of December 31, 2020
  
$
480,261
 
  
$
(240,058
) 
  
$
240,203
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Amortization
 
expense for the years ended December 31
, 2021
, 2020
and 2019
was $46.7 million, $48.0 million and $43.4
 million, respectively.
The following table shows the weighted average remaining useful lives per intangible asset category as of December 31, 2021.
 
 
  
Years
 
Customer relationships
  
 
 5.8
 
Technology
  
 
 3.1
 
Carrier contracts
  
 
 4.0
 
Trademarks
  
 
 5.1
 
Internally developed computer software
  
 
 4.0
 
The following table shows the estimated amortization expense for the next five years and thereafter as of December 31, 2021.
 
 
  
Amount
 
2022
  
$
 46,788
 
2023
  
 
 43,223
 
2024
  
 
 39,132
 
2025
  
 
 36,359
 
2026
  
 
 22,350
 
Thereafter
  
 
 15,622
 
 
  
 
 
 
Total
  
$
 203,474
 
 
  
 
 
 
Impairment of Internally Developed Computer Software
During the year ended December 31, 2019, the Company recorded a $3.9 million impairment charge for internally developed and acquired computer software associated with the RACO Wireless, LLC acquisition in December 2014. The impairment was a direct result of technological advancements resulting in 2G and 3G networks being sunset and is recorded under intangible asset impairment loss in the consolidated statement of operations.