Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.19.3.a.u2
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill represents the excess of the fair value of consideration given over the fair value of the tangible assets, identifiable intangible assets and liabilities assumed in business combinations.
Changes in the carrying amount of goodwill for the year ended December 31, 2019 were as follows (in thousands):
 
2019
 
Stamps.com Segment
 
MetaPack Segment
 
Total
Goodwill balance at December 31, 2018
$
239,705

 
$
142,005

 
$
381,710

Acquisition of MetaPack (see Note 3 - "Acquisitions")

 
(2,512
)
 
(2,512
)
Foreign currency translation

 
5,342

 
5,342

Goodwill balance at December 31, 2019
$
239,705

 
$
144,835

 
$
384,540



Changes in the carrying amount of goodwill for the year ended December 31, 2018 were as follows (in thousands):
 
2018
 
Stamps.com Segment
 
MetaPack Segment
 
Total
Goodwill balance at December 31, 2017
$
239,705

 
$

 
$
239,705

Acquisition of MetaPack (see Note 3 - "Acquisitions")

 
141,468

 
141,468

Foreign currency translation

 
537

 
537

Goodwill balance at December 31, 2018
$
239,705

 
$
142,005

 
$
381,710



We have amortizable and non-amortizable intangible assets consisting of trademarks, trade names, developed technology, non-compete agreements, customer relationships, and other. The gross carrying amount of amortizable and non-amortizable intangible assets was $229.4 million at December 31, 2019 and $226.5 million at December 31, 2018. Non-amortizable assets of $11.4 million as of both December 31, 2019 and December 31, 2018 consist primarily of the trade name relating to the Endicia acquisition.
The following table summarizes our amortizable intangible assets as of December 31, 2019 (in thousands, except years):
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Remaining weighted average amortization period (years)
Patents and Others
$
8,195

 
$
8,195

 
$

 
0.0
Customer Relationships
111,997

 
46,503

 
65,494

 
7.7
Technology
82,269

 
25,240

 
57,029

 
9.4
Non-Compete
2,211

 
1,889

 
322

 
1.5
Trademarks and Trade Names
13,378

 
2,549

 
10,829

 
9.9
Total amortizable intangible assets at
December 31, 2019
$
218,050

 
$
84,376

 
$
133,674

 
8.5



The following table summarizes our amortizable intangible assets as of December 31, 2018 (in thousands, except years):
 
Gross
Carrying
 Amount
 
Accumulated
 Amortization
 
Net Carrying
Amount
 
Remaining weighted average amortization period (years)
Patents and Others
$
8,889

 
$
8,866

 
$
23

 
0.5
Customer Relationships
110,194

 
33,299

 
76,895

 
8.6
Technology
80,878

 
17,451

 
63,427

 
10.3
Non-Compete
2,211

 
1,668

 
543

 
2.4
Trademarks and Trade Names
12,977

 
1,395

 
11,582

 
10.8
Total amortizable intangible assets at
December 31, 2018
$
215,149

 
$
62,679

 
$
152,470

 
9.4


We recorded amortization of intangible assets totaling approximately $22.2 million, $18.3 million, and $16.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. Amortization of intangible assets is included in general and administrative expense in the accompanying consolidated statements of operations.
Our estimated amortization expense for the next five years and thereafter is as follows (in thousands):
Year Ended December 31,
Estimated Amortization Expense
2020
$
22,199

2021
19,806

2022
10,627

2023
9,836

2024
9,513

Thereafter
61,693

   Total
$
133,674