Goodwill and Intangible Assets

Goodwill

As of June 30, 2019 and December 31, 2018, the Company had a goodwill balance of $836.3 million and $834.9 million, respectively. The change in the carrying amount of goodwill during the six months ended June 30, 2019 was the result of foreign currency translation adjustments as well as a $0.4 million addition associated with the acquisition of CrowdStorage (defined below).

Intangible assets, net

The following table presents intangible asset balances (in thousands):



	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Estimated Useful Lives
Definite-lived intangible assets:
Customer contracts	$	966,909	$	(757,039	)	$	209,870	$	964,100	$	(717,648	)	$	246,452	10 years
2GIG 2.0 technology	17,000		(15,913		)	1,087		17,000		(15,292		)	1,708		8 years
Other technology	4,725		(2,133		)	2,592		2,917		(1,667		)	1,250		5 - 7 years
Space Monkey technology	7,100		(6,283		)	817		7,100		(5,756		)	1,344		6 years
Patents	12,526		(9,737		)	2,789		12,123		(8,415		)	3,708		5 years
Total definite-lived intangible assets:	$	1,008,260	$	(791,105	)	$	217,155	$	1,003,240	$	(748,778	)	$	254,462

Indefinite-lived intangible assets:
IP addresses	564		—			564		564		—			564
Domain names	59		—			59		59		—			59
Total Indefinite-lived intangible assets	623		—			623		623		—			623
Total intangible assets, net	$	1,008,883	$	(791,105	)	$	217,778	$	1,003,863	$	(748,778	)	$	255,085

During the year ended December 31, 2016, Vivint Wireless entered into leasing agreements with Nextlink Wireless, LLC (“Nextlink”) for designated radio frequency spectrum in 40 mid-sized metropolitan markets. The lease term was for seven years, with an option to become the licensor of record with the Federal Communications Commission (“FCC”) with respect to the applicable spectrum licenses at the end of this term for a nominal fee. The Company acquired $31.3 million of spectrum licenses, measured using the present value of the lease payments, and recorded an intangible asset and a corresponding liability within other long-term obligations. While licenses are issued for only a fixed time, such licenses are subject to renewal by the FCC.

In January 2018, Vivint Wireless and Verizon consummated the transactions contemplated by a termination agreement to which the parties agreed, among other things, to terminate the spectrum leases between Vivint Wireless and Nextlink, a subsidiary of Verizon, in exchange for a cash payment by Verizon to Vivint Wireless. The calculation of the gain recorded included cash proceeds of $55.0 million, extinguishment of the spectrum license liability of $27.9 million, offset by the write-off of the spectrum license asset in the amount of $31.3 million and regulatory costs associated with the sale of $1.2 million for a total net gain on sale of $50.4 million which is included in other income, net in the condensed consolidated statement of operations.

In May 2019, the Company acquired majority ownership interest in CrowdStorage, Inc. (“CrowdStorage”), a distributed cloud storage solution company. The Company determined that CrowdStorage was a variable interest entity and the Company was the primary beneficiary, because CrowdStorage was dependent on the Company for ongoing financial support. As part of this acquisition, the Company recognized a definite-lived intangible asset of $1.8 million, included within the other technology asset class in the above table. The financial position and results of operations of CrowdStorage are consolidated by the Company and the non-controlling interest associated with the minority interest holders was immaterial as of, and for, the three and six months ended June 30, 2019.

Amortization expense related to intangible assets was approximately $20.2 million and $22.7 million for the three months ended June 30, 2019 and 2018, respectively, and $40.5 million and $45.5 million for the six months ended June 30, 2019 and 2018, respectively.

As of June 30, 2019, the remaining weighted-average amortization period for definite-lived intangible assets was 3.4 years. Estimated future amortization expense of intangible assets, excluding approximately $0.3 million in patents currently in process, is as follows as of June 30, 2019 (in thousands):




2019 - Remaining Period	$	39,926
2020	69,207
2021	58,850
2022	48,868
2023	51
Thereafter	3
Total estimated amortization expense	$	216,905