Intangible Assets, Goodwill and Other Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Goodwill and Other Assets

(a) Intangible Assets

Intangible assets consisted of the following (in thousands, except for weighted average amortization period):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Amortization Period in Years
September 30, 2020
Customer relationships	$	125,423	$	(18,968)	$	106,455	11.3
Trade names	1,400		(361)		1,039		2.2
Intellectual property	27,700		(14,439)		13,261		3.5
Total	$	154,523	$	(33,768)	$	120,755


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Amortization Period in Years
December 31, 2019
Customer relationships	$	135,290	$	(21,637)	$	113,653	12.1
Trade names	1,536		(147)		1,389		3.0
Intellectual property	27,700		(10,893)		16,807		3.7
Total	$	164,526	$	(32,677)	$	131,849

Amortization expense of intangible assets is expected to approximate the following (in thousands):


Year ending December 31,	Amortization
2020 (excluding the nine months ended September 30, 2020)	$	3,562
2021	14,247
2022	14,235
2023	11,405
2024	10,330
Thereafter	66,976
Total	$	120,755

For the three months ended September 30, 2020 and 2019, amortization expense related to intangible assets was $3.7 million and $2.3 million, respectively.

For the nine months ended September 30, 2020 and 2019, amortization expense related to intangible assets was $11.1 million and $7.0 million, respectively.

(b) Goodwill

As a result of adjustments relating to the Accent acquisition, the changes in the carrying amount of goodwill were as follows (in thousands):



Balance at December 31, 2019	$	599,351
Accent acquisition - Adjustment	(4,790)
Balance at September 30, 2020	$	594,561

Included in Other assets is a Level 1 investment in equity securities with a cost basis of $7.4 million. As of September 30, 2020 and December 31, 2019, the fair value measurement of the equity instrument was $9.6 million and $7.9 million, respectively. There were no sales, settlements issuances or transfers related to this level 1 instrument.

The Company recorded a net unrealized loss of $1.2 million and an unrealized gain of $1.7 million for the three and nine months ended September 30, 2020, respectively. There were no realized or unrealized gains in the three and nine months ended September 30, 2019. These gains and losses are reflected as a component of Other (expense)/income in the accompanying Consolidated Statements of Income.

During the three months ended September 30, 2019, a third party acquired one hundred percent of the outstanding stock of InstaMed Holdings, Inc. ("InstaMed") including the Company's cost based investment in Instamed of $2.1 million. As a result, the Company received proceeds of $9.8 million from the sale of the investment and recognized a $7.7 million gain in other income for the three and nine months ended September 30, 2019.