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Goodwill and Other Intangible Assets
 9 Months Ended
Sep. 30, 2021
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 2021 into the following seven segments: Kaplan International, Higher Education, Supplemental Education, Television Broadcasting, Manufacturing, Healthcare and Automotive (see Note 16).
In the third quarter of 2021, as a result of the emergence of the COVID-19 Delta variant and continued weak product demand in the commercial office electrical products and hospitality sectors caused by the COVID-19 pandemic, the Company performed an interim review of the goodwill and indefinite-lived intangibles of the Dekko reporting unit. As a result of the impairment review, the Company recorded a $26.7 million goodwill impairment charge. The Company estimated the fair value of the reporting unit by utilizing a discounted cash flow model. 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 estimated fair value after taking into account the effect of deferred income taxes. Dekko is included in manufacturing.
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 Clyde’s Restaurant Group (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 is included in other businesses and the automotive dealerships are included in automotive.
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 September 30, 2021 and 2020, was $16.0 million and $14.2 million, respectively. Amortization of intangible assets for the nine months ended September 30, 2021 and 2020, was $43.8 million and $42.6 million, respectively. Amortization of intangible assets is estimated to be approximately $16 million for the remainder of 2021, $60 million in 2022, $51 million in 2023, $40 million in 2024, $33 million in 2025 and $48 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows:
(in thousands)EducationTelevision
Broadcasting		ManufacturingHealthcareAutomotiveOther
Businesses		Total
Balance as of December 31, 2020        
Goodwill$1,183,379 $190,815 $234,993 $98,421 $39,121 $91,351 $1,838,080 
Accumulated impairment losses
(331,151)— (7,616)— — (14,563)(353,330)
852,228 190,815 227,377 98,421 39,121 76,788 1,484,750 
Acquisitions— — — — — 167,334 167,334 
Impairment— — (26,686)— — — (26,686)
Foreign currency exchange rate changes
(13,055)— — — — — (13,055)
Balance as of September 30, 2021        
Goodwill1,170,324 190,815 234,993 98,421 39,121 258,685 1,992,359 
Accumulated impairment losses
(331,151)— (34,302)— — (14,563)(380,016)
$839,173 $190,815 $200,691 $98,421 $39,121 $244,122 $1,612,343 
The changes in carrying amount of goodwill at the Company’s education division were as follows:
(in thousands)Kaplan
International		Higher
Education		Supplemental EducationTotal
Balance as of December 31, 2020      
Goodwill$634,749 $174,564 $374,066 $1,183,379 
Accumulated impairment losses— (111,324)(219,827)(331,151)
634,749 63,240 154,239 852,228 
Foreign currency exchange rate changes(13,065)— 10 (13,055)
Balance as of September 30, 2021      
Goodwill621,684 174,564 374,076 1,170,324 
Accumulated impairment losses— (111,324)(219,827)(331,151)
$621,684 $63,240 $154,249 $839,173 
Other intangible assets consist of the following:
As of September 30, 2021As of December 31, 2020
(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
$323,569 $201,297 $122,272 $294,077 $178,075 $116,002 
Trade names and trademarks
2–10 years
160,411 65,551 94,860 109,809 54,766 55,043 
Network affiliation agreements
10 years
17,400 8,193 9,207 17,400 6,888 10,512 
Databases and technology
3–6 years
36,550 24,709 11,841 34,864 19,924 14,940 
Noncompete agreements
2–5 years
1,000 990 10 1,000 937 63 
Other
1–8 years
29,800 19,744 10,056 24,800 16,714 8,086 
    $568,730 $320,484 $248,246 $481,950 $277,304 $204,646 
Indefinite-Lived Intangible Assets
              
Trade names and trademarks  $87,085     $87,429     
Franchise agreements21,858 21,858 
FCC licenses11,000 11,000 
Licensure and accreditation  150     150     
  $120,093 $120,437