Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

In the first quarter of 2020, as a result of the uncertainty and challenging operating environment created by the COVID-19 pandemic, the Company performed an interim review of the goodwill, indefinite-lived intangibles and other long-lived assets of the CRG and automotive dealership reporting units and asset groups. As a result of the impairment reviews, the Company recorded a $9.7 million goodwill and indefinite-lived intangible asset impairment charge at CRG and a $6.7 million indefinite-lived intangible asset impairment charge at the auto dealerships. The Company estimated the fair value of the reporting units and indefinite-lived intangible assets by utilizing a discounted cash flow model. The carrying value of the CRG reporting unit and the indefinite-lived intangible assets exceeded the estimated fair value, resulting in a goodwill and indefinite-lived intangible asset impairment charge for the amount by which the carrying value exceeded the estimated fair value. CRG and the automotive dealerships are included in other businesses. Additional COVID-19 disruptions could result in future adverse changes in projections for future operating results or other key assumptions, such as projected revenue, profit margin, capital expenditures or cash flows associated with fair value estimates and could lead to additional future impairments, which could be material.

Amortization of intangible assets for the three months ended March 31, 2020 and 2019, was $14.2 million and $13.1 million, respectively. Amortization of intangible assets is estimated to be approximately $41 million for the remainder of 2020, $50 million in 2021, $44 million in 2022, $36 million in 2023, $26 million in 2024 and $38 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
Balance 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
Acquisitions	13,151			—		—			—		—		—			13,151
Impairment	—			—		—			—		—		(6,878		)	(6,878		)
Foreign currency exchange rate changes	(32,361		)	—		—			—		—		—			(32,361		)
Balance as of March 31, 2020
Goodwill	1,121,748			190,815		234,993			98,421		15,860		53,684			1,715,521
Accumulated impairment losses	(331,151		)	—		(7,616		)	—		—		(14,563		)	(353,330		)
	$	790,597		$	190,815	$	227,377		$	98,421	$	15,860	$	39,121		$	1,362,191

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
Balance 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
Acquisitions	9,889			—			—			3,262			13,151
Foreign currency exchange rate changes	(32,221		)	—			—			(140		)	(32,361		)
Balance as of March 31, 2020
Goodwill	573,272			174,564			166,920			206,992			1,121,748
Accumulated impairment losses	—			(111,324		)	(102,259		)	(117,568		)	(331,151		)
	$	573,272		$	63,240		$	64,661		$	89,424		$	790,597

Other intangible assets consist of the following:



		As of March 31, 2020						As of December 31, 2019
(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	$	292,305	$	152,705	$	139,600	$	291,626	$	144,625	$	147,001
Trade names and trademarks	2–10 years	99,989		45,176		54,813		87,190		42,770		44,420
Network affiliation agreements	10 years	17,400		5,583		11,817		17,400		5,148		12,252
Databases and technology	3–6 years	31,881		14,096		17,785		30,623		12,850		17,773
Noncompete agreements	2–5 years	1,150		804		346		1,313		929		384
Other	1–8 years	24,800		14,153		10,647		24,800		13,149		11,651
		$	467,525	$	232,517	$	235,008	$	452,952	$	219,471	$	233,481
Indefinite-Lived Intangible Assets
Trade names and trademarks		$	83,164					$	100,491
Franchise agreements		21,858						28,556
FCC licenses		11,000						11,000
Licensure and accreditation		150						150
		$	116,172					$	140,197