Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company changed the presentation of its segments in the third quarter of 2019 into the following eight reportable segments: Kaplan International, Higher Education, Test Preparation, Professional (U.S.), Television Broadcasting, Manufacturing, Healthcare and SocialCode (see Note 19).

In the fourth quarter of 2019, Television Broadcasting recorded an intangible asset impairment charge of $7.8 million related to FCC licenses at two of its stations, due to a decline in local market conditions. The fair value of the intangible asset was estimated using an income approach.

In the third quarter of 2018, Healthcare recorded an intangible asset impairment charge of $7.9 million following the decision to discontinue the use of the Celtic trade name. The fair value of the intangible asset was estimated using an income approach.

In the second quarter of 2017, as a result of a challenging operating environment, the Forney reporting unit recorded a goodwill and intangible asset impairment charge of $8.6 million. The Company performed an interim review of the goodwill and other long-lived assets of the reporting unit by utilizing a discounted cash flow model to estimate the fair value. The carrying value of the reporting unit exceeded the estimated fair value, resulting in a goodwill impairment charge for the amount by which the carrying value exceeded the reporting unit’s estimated fair value. Forney is included in manufacturing.

Amortization of intangible assets for the years ended December 31, 2019, 2018 and 2017, was $53.2 million, $47.4 million and $41.2 million, respectively. Amortization of intangible assets is estimated to be approximately $53 million in 2020, $47 million in 2021, $41 million in 2022, $34 million in 2023, $24 million in 2024 and $34 million thereafter.

The changes in the carrying amount of goodwill, by segment, were as follows:

(in thousands)	Education			Television Broadcasting		Manufacturing			Healthcare		SocialCode		Other Businesses			Total
As of December 31, 2017
Goodwill	$	1,171,812		$	190,815	$	220,041		$	69,409	$	6,099	$	7,685		$	1,665,861
Accumulated impairment losses	(350,850		)	—		(7,616		)	—		—		(7,685		)	(366,151		)
	820,962			190,815		212,425			69,409		6,099		—			1,299,710
Acquisitions	20,424			—		11,438			217		9,761		—			41,840
Dispositions	(11,191		)	—		—			—		—		—			(11,191		)
Foreign currency exchange rate changes	(32,647		)	—		—			—		—		—			(32,647		)
As of December 31, 2018
Goodwill	1,128,699			190,815		231,479			69,626		15,860		7,685			1,644,164
Accumulated impairment losses	(331,151		)	—		(7,616		)	—		—		(7,685		)	(346,452		)
	797,548			190,815		223,863			69,626		15,860		—			1,297,712
Acquisitions	6,207			—		3,514			28,795		—		45,999			84,515
Dispositions	(579		)	—		—			—		—		—			(579		)
Foreign currency exchange rate changes	6,631			—		—			—		—		—			6,631
As of December 31, 2019
Goodwill	1,140,958			190,815		234,993			98,421		15,860		53,684			1,734,731
Accumulated impairment losses	(331,151		)	—		(7,616		)	—		—		(7,685		)	(346,452		)
	$	809,807		$	190,815	$	227,377		$	98,421	$	15,860	$	45,999		$	1,388,279

The changes in carrying amount of goodwill at the Company’s education division were as follows:

(in thousands)	Kaplan International			Higher Education			Test Preparation			Professional (U.S.)			Total
As of December 31, 2017
Goodwill	$	615,861		$	205,494		$	166,098		$	184,359		$	1,171,812
Accumulated impairment losses	—			(131,023		)	(102,259		)	(117,568		)	(350,850		)
	615,861			74,471			63,839			66,791			820,962
Acquisitions	62			—			822			19,540			20,424
Dispositions	—			(11,191		)	—			—			(11,191		)
Foreign currency exchange rate changes	(32,499		)	(40		)	—			(108		)	(32,647		)
As of December 31, 2018
Goodwill	583,424			174,564			166,920			203,791			1,128,699
Accumulated impairment losses	—			(111,324		)	(102,259		)	(117,568		)	(331,151		)
	583,424			63,240			64,661			86,223			797,548
Acquisitions	6,207			—			—			—			6,207
Dispositions	(579		)	—			—			—			(579		)
Foreign currency exchange rate changes	6,552			—			—			79			6,631
As of December 31, 2019
Goodwill	595,604			174,564			166,920			203,870			1,140,958
Accumulated impairment losses	—			(111,324		)	(102,259		)	(117,568		)	(331,151		)
	$	595,604		$	63,240		$	64,661		$	86,302		$	809,807

Other intangible assets consist of the following:

		As of December 31, 2019						As of December 31, 2018
(in thousands)	Useful Life Range	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
Student and customer relationships	2–10 years	$	291,626	$	144,625	$	147,001	$	282,761	$	114,429	$	168,332
Trade names and trademarks	2–10 years	87,190		42,770		44,420		87,285		39,825		47,460
Network affiliation agreements	10 years	17,400		5,148		12,252		17,400		3,408		13,992
Databases and technology	3–6 years	30,623		12,850		17,773		27,041		8,471		18,570
Noncompete agreements	2–5 years	1,313		929		384		1,088		838		250
Other	1–8 years	24,800		13,149		11,651		24,530		9,873		14,657
		$	452,952	$	219,471	$	233,481	$	440,105	$	176,844	$	263,261
Indefinite-Lived Intangible Assets
Trade names and trademarks		$	100,491					$	80,102
Franchise agreements		28,556						—
FCC licenses		11,000						18,800
Licensure and accreditation		150						150
		$	140,197					$	99,052