Goodwill and Other Intangible Assets | Goodwill The Company's goodwill by segment is as follows: December 31, 2021 December 31, 2020 Executive Search Americas $ 91,463 $ 91,643 Europe 1,532 — Total Executive Search 92,995 91,643 On-Demand Talent 45,529 — Total goodwill $ 138,524 $ 91,643 Changes in the carrying amount of goodwill by segment for the years ended December 31, 2021, 2020, and 2019 were as follows: Executive Search Americas Europe Asia Pacific On-Demand Talent Total Goodwill $ 88,410 $ 24,924 $ 8,758 $ — $ 122,092 Accumulated impairment losses — — — — — Balance at December 31, 2018 88,410 24,924 8,758 — 122,092 2GET acquisition 3,793 — — — 3,793 Foreign currency translation 294 655 (3) — 946 Balance at December 31, 2019 92,497 25,579 8,755 — 126,831 Impairment — (24,475) (8,495) — (32,970) Foreign currency translation (854) (1,104) (260) — (2,218) Balance at December 31, 2020 91,643 — — — 91,643 BTG acquisition — — — 45,529 45,529 Finland acquisition — 1,532 — — 1,532 Foreign currency translation (180) — — — (180) Goodwill 91,463 26,007 8,495 45,529 171,494 Accumulated impairment losses — (24,475) (8,495) — (32,970) Balance at December 31, 2021 $ 91,463 $ 1,532 $ — $ 45,529 $ 138,524 In April 2021, the Company acquired BTG and included $45.5 million of goodwill related to the acquisition in the On-Demand Talent operating segment. In October 2021, the Company acquired H&S Finland, and included $1.5 million of goodwill related to the acquisition in the Europe operating segment. During the 2021 fourth quarter, the Company conducted its annual goodwill impairment evaluation as of October 31, 2021 in accordance with ASU No. 2017-04, Intangibles - Goodwill and Other. The goodwill impairment test is completed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value; however, the loss recognized is not to exceed the total amount of goodwill allocated to that reporting unit. The impairment test is considered for each of the Company’s reporting units that has goodwill as defined in the accounting standard for goodwill and intangible assets. The Company operates five reporting units: Americas, Europe (which includes Africa), Asia Pacific (which includes the Middle East), On-Demand Talent, and Heidrick Consulting. As of October 31, 2021, only the Americas, Europe, and On-Demand Talent reporting units had recorded goodwill. During the impairment evaluation process, the Company used a discounted cash flow methodology to estimate the fair value of each of its reporting units with goodwill. The discounted cash flow approach is dependent on a number of factors, including estimates of future market growth and trends, forecasted revenue and costs, capital investments, appropriate discount rates, certain assumptions to allocate shared costs, assets and liabilities, historical and projected performance of the reporting unit and the macroeconomic conditions affecting each of the Company’s reporting units. The assumptions used in the determination of fair value were (1) a forecast of growth in the near and long term; (2) the discount rate; (3) working capital investments; and (4) other factors. Based on the results of the impairment analysis, the fair values of the Americas, Europe, and On-Demand Talent reporting units exceeded their carrying values by 369%, 97% and 15%, respectively. During the twelve months ended December 31, 2020, the Company determined that the goodwill within the Europe and Asia Pacific reporting units was impaired, which resulted in impairment charges of $24.5 million and $8.5 million, respectively, to write off all of the goodwill associated with each of the reporting units. The impairment charges are recorded within I mpairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the twelve months ended December 31, 2020. The impairments were non-cash in nature and did not affect our liquidity, cash flows, borrowing capability or operations, nor did they impact the debt covenants under our credit agreement. Other Intangible Assets, net The Company’s other intangible assets, net by segment, are as follows: December 31, 2021 December 31, 2020 Executive Search Americas $ 103 $ 225 Europe 463 852 Asia Pacific 33 52 Total Executive Search 599 1,129 On-Demand Talent 8,570 — Total Other Intangible Assets, Net $ 9,169 $ 1,129 In April 2021, the Company acquired BTG and recorded customer relationships, software and trade name intangible assets in the On-Demand Talent operating segment of $5.8 million, $3.1 million and $1.7 million, respectively. The combined weighted-average amortization period for the acquired intangible assets is 7.4 years with amortization periods of 11.0, 3.0 and 3.0 years for the customer relationships, software and trade name, respectively. The carrying amount of amortizable intangible assets and the related accumulated amortization were as follows: December 31, 2021 December 31, 2020 Weighted Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships 10.6 $ 22,127 $ (16,495) $ 5,632 $ 16,600 $ (15,587) $ 1,013 Trade name 3.1 2,441 (1,237) $ 1,204 280 (164) 116 Software 3.0 3,110 (777) 2,333 — — — Total intangible assets 7.7 $ 27,678 $ (18,509) $ 9,169 $ 16,880 $ (15,751) $ 1,129 Intangible asset amortization expense for the years ended December 31, 2021, 2020 and 2019, was $2.9 million, $0.7 million and $0.9 million, respectively. The Company's estimated future amortization expense related to intangible assets as of December 31, 2021 for the years ended December 31, is as follows: 2022 2,822 2023 2,733 2024 1,154 2025 765 2026 527 Thereafter 1,168 Total 9,169 |