Goodwill and Intangible Assets, net

9 Months Ended

Sep. 27, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, net

Goodwill and Intangible Assets, net

Goodwill

Based on management’s assessment of goodwill, there was no impairment or change for the three-month and nine-month periods ended September 27, 2020.

The Company considered the implications of COVID-19 as it relates to goodwill and indefinite-lived assets fair value. COVID-19 has had a marginally unfavorable impact on the Company’s results of operations for the three-month and nine-month periods ended September 27, 2020. 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 options. 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. Based on management’s assessment there has been no material impact to goodwill and indefinite-lived assets fair value due to the implications of COVID-19.

Intangible Assets, net

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

	September 27, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	286,900	$	(139,699)	$	147,201
Technology	1,700		(1,700)		—
Trade name	16,900		(7,778)		9,122
Total	$	305,500	$	(149,177)	$	156,323
	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 nine-month period ended September 27, 2020, customer relationships and trade name intangibles had weighted average remaining useful lives of 7.0 and 5.3 years, respectively. As of the year-ended December 31, 2019, customer relationships and trade name intangibles had weighted average remaining useful lives of 7.9 and 6.0 years, respectively.

During the three-month and nine-month periods ended September 27, 2020 amortization expense was approximately $8.0 million and $24.1 million, respectively. During the three-month and nine-month periods ended September 29, 2019, amortization expense was approximately $8.2 million and $25.0 million, respectively.

Estimated amortization expense in future years is expected to be:

	As of
	September 27, 2020
Remainder of 2020	$	8,047
2021	31,824
2022	31,775
2023	24,565
2024	20,490
Thereafter	39,622
Total	$	156,323