8. INTANGIBLE ASSETS AND GOODWILL

Intangible assets, net

Intangible assets, net consist of the following (in thousands):
December 31,
20202019
Intangible assets subject to amortization, gross (1)$36,367 $30,284 
Less: accumulated amortization of intangible assets subject to amortization(22,370)(18,528)
Total intangible assets, net$13,997 $11,756 
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(1) — At December 31, 2020, the weighted average remaining useful life for intangible assets subject to amortization was 4.93 years.

Amortization of intangible assets other than goodwill is classified within the corresponding operating expense categories in our consolidated statements of operations as follows (in thousands):
Year ended December 31,
 202020192018
Technology$3,589 $3,726 $3,424 
Sales and marketing40 64 460 
General and administrative236 (458)1,402 
Total amortization$3,865 $3,332 $5,286 
    
General and administrative amortization above for 2019 was net of reversals of $1.4 million due to adjustments to the purchase price allocation for Mac Warehouse.

Estimated amortization expense for the next five years is: $4.5 million in 2021, $3.3 million in 2022, $2.8 million in 2023, $2.0 million in 2024, $1.2 million in 2025 and $126,000 thereafter.

Goodwill    

The following table provides information about changes in the carrying amount of goodwill for the periods presented (in thousands):
Amount
Balances as of December 31, 2018 (1)
$22,895 
Goodwill acquired during year1,685 
Purchase price adjustment2,540 
Balances as of December 31, 2019 (2)
27,120 
Goodwill acquired during year7,830 
Balances as of December 31, 2020 (3)
$34,950 
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(1), (2), (3) — Goodwill is net of accumulated impairment loss and other adjustments of $3.3 million.

Historical Timeline

Fiscal YearFiled
2020Feb 26, 2021Showing above
2018Mar 18, 2019
2017Mar 15, 2018
2016Mar 3, 2017
2015Mar 8, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.