Goodwill and Intangible Assets, net

3 Months Ended

Mar. 29, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Based on management’s assessment of goodwill, there was no impairment or change for the three months ended March 29, 2020.

The Company considered the implications of COVID-19 as it relates to the carrying value of goodwill and indefinite-lived assets. Although COVID-19 has had an adverse effect on the Company’s result of operations for the first quarter of 2020, management does not currently expect that such impact will be material to the Company’s full year results. Since the Company’s primary customers are departments and agencies within the U.S. Government, it has not historically had significant issues collecting its receivables and management does not foresee

issues collecting receivables in the foreseeable future. In addition, the Company’s contract awards typically extend to at least five years, including options, and it has a strong history of being awarded a majority of these contract options. Management does not anticipate that the pandemic will have a materially adverse impact on such awards. The Company’s liquidity position has not been materially impacted, and management continues to believe that the Company has adequate liquidity to fund its operations and meet its debt service obligations for the foreseeable future.

Intangible Assets, net

The components of intangible assets, net consisted of the following as of the dates presented (in thousands):


	March 29, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount


Customer relationships	$	286,900	$	(124,515)	$	162,385
Technology	1,700		(1,700)		—
Trade name	16,900		(6,868)		10,032
Total	$	305,500	$	(133,083)	$	172,417

	December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount


Customer relationships	$	286,900	$	(116,923)	$	169,977
Technology	1,700		(1,700)		—
Trade name	16,900		(6,413)		$	10,487
Total	$	305,500	$	(125,036)	$	180,464

As of the three months ended March 29, 2020, customer relationships and trade name intangibles had weighted average remaining useful lives of 7.7 and 5.8 years, respectively. As of the year-ended December 31, 2019, customer relationships and trade name had weighted average remaining useful lives of 7.9 and 6.0 years, respectively.

For the three months ended March 29, 2020 and March 31, 2019, amortization expense was approximately $8.0 million and $8.7 million, respectively.

Estimated amortization expense in future years is expected to be:


	As of
	March 29, 2020
Remainder of 2020	$	24,141
2021	31,824
2022	31,775
2023	24,565
2024	20,490
Thereafter	39,622
Total	$	172,417