Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company completes its annual goodwill impairment test during the fourth quarter of each year, or more frequently if triggering events indicate a possible impairment in one or more of its reporting units. During the second quarter of 2021, the Company lowered its financial expectations for the remainder of 2021 due to increased cyberattacks, delays in product initiatives and a more uncertain COVID-19 outlook. These factors constituted an interim triggering event as of the end of the Company's second quarter of 2021, and the Company performed an impairment analysis with regard to its indefinite-lived intangible assets and goodwill. No triggering events were identified during the third quarter of 2021. Goodwill The following table summarizes the changes in the carrying amount of goodwill for the nine months ended September 30, 2021 and the year ended December 31, 2020: (in thousands) Balance as of January 1, 2020 $ 199,238 Impairment charges (42,713) Impact of currency translation 57 Balance as of December 31, 2020 $ 156,582 Impairment charges (21,786) Impact of currency translation (37) Balance as of September 30, 2021 $ 134,759 For the quarter ended June 30, 2021, as a result of the interim goodwill impairment test, the fair value of the Spark reporting unit exceeded the carrying amount, and as a result, no goodwill impairment was recorded. Goodwill assigned to the Spark reporting unit was $24.5 million. For the Zoosk reporting unit, the fair value did not exceed the carrying value, and the Company recorded a goodwill impairment charge of $21.8 million. The Company estimated the fair value of its reporting units utilizing a present value cash flow model. The Company believes this non-cash impairment charge does not impact its ability to generate cash flow in the future and it is not tax deductible. There was no additional goodwill impairment charge for the quarter ended September 30, 2021. The total accumulated impairment loss of the Company's goodwill was $84.5 million and $62.7 million as of September 30, 2021 and December 31, 2020, respectively. Intangible Assets Intangible assets consists of the following as of September 30, 2021 and December 31, 2020: September 30, 2021 (in thousands) Weighted-Average Remaining Amortization Period (Years) Gross Carrying Amount Accumulated Impairment Charges Accumulated Amortization Currency Translation Impact on Carrying Amount Net Carrying Amount Indefinite-lived intangible assets: Brands and trademarks $ 63,800 $ (21,260) $ — $ — $ 42,540 Long-lived intangible assets: Brands and trademarks 0.1 86 — (48) 1 39 Acquired technology 1.7 5,910 — (3,715) — 2,195 Customer relationships 0.0 10,780 — (10,760) — 20 Licenses and domains 0.0 205 — (177) 1 29 Other 0.0 470 — (459) — 11 Total intangible assets 1.8 $ 81,251 $ (21,260) $ (15,159) $ 2 $ 44,834 December 31, 2020 (in thousands) Weighted-Average Remaining Amortization Period (Years) Gross Carrying Amount Accumulated Impairment Charges Accumulated Amortization Currency Translation Impact on Carrying Amount Net Carrying Amount Indefinite-lived intangible assets: Brands and trademarks $ 63,800 $ (10,960) $ — $ — $ 52,840 Long-lived intangible assets: Brands and trademarks 0.1 3,025 (2,573) (409) 4 47 Acquired technology 1.3 7,300 — (3,997) — 3,303 Customer relationships 0.4 11,420 — (8,762) — 2,658 Licenses and domains 0.0 410 — (361) 3 52 Other 0.0 5,203 — (5,102) (2) 99 Total intangible assets 1.8 $ 91,158 $ (13,533) $ (18,631) $ 5 $ 58,999 For the interim assessment for the quarter ended June 30, 2021, the Company recognized a Zoosk trademark impairment charge of $10.3 million. The Company estimated the fair value using an income approach, specifically the relief-from-royalty method, based on the present value of future cash flows. The Company used a royalty rate of 4.0% and discount rate of 14.5%. There was no additional impairment charge for the quarter ended September 30, 2021. No impairment charge was recorded for the long-lived intangible assets for the nine months ended September 30, 2021 and the year ended December 31, 2020. Amortization expense for the nine months ended September 30, 2021 and the year ended December 31, 2020 were $3.9 million and $7.3 million, respectively. At September 30, 2021, amortization of long-lived intangible assets for each of the next five years and thereafter is estimated to be as follows: (in thousands) Amortization Expense 2021 $ 363 2022 1,280 2023 632 2024 9 2025 9 Thereafter 1 Total estimated amortization expense $ 2,294 |