Goodwill and Intangible Assets, net

12 Months Ended

Dec. 31, 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 year ended December 31, 2020.

The Company considered the implications of COVID-19 as it relates to the fair value of goodwill. COVID-19 has had a marginally unfavorable impact on the Company’s results of operations for the year ended December 31, 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 the fair value of goodwill due to the implications of COVID-19.

The following table presents changes in the carrying amount of goodwill by reportable segment for the periods presented (in thousands):

	GMS		NSS		Total
Balance as of December 31, 2018	$	208,593	$	199,432	$	408,025
Acquisitions	—		—		—
Other	—		1,563		1,563
Balance as of December 31, 2019	$	208,593	$	200,995	$	409,588
Acquisitions	—		181,080		181,080
Other	—		—		—
Balance as of December 31, 2020	$	208,593	$	382,075	$	590,668

Intangible Assets, net

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

	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	390,900	$	(149,163)	$	241,737
Technology	1,700		(1,700)		—
Trade name	24,800		(8,327)		16,473
Total	$	417,400	$	(159,190)	$	258,210
	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 December 31, 2020, customer relationships and trade name intangibles had weighted average remaining useful lives of 8.2 years and 5.9 years, respectively. As of December 31, 2019, customer relationships and trade name intangibles had weighted average remaining useful lives of 7.9 years and 6.0 years, respectively.

For the year ended December 31, 2020, December 31, 2019 and December 31, 2018, amortization expense was approximately $34.2 million, $33.2 million and $35.8 million respectively.

Estimated amortization expense in future years is expected to be:

	As of
	December 31, 2020
2021	$	50,106
2022	50,089
2023	40,666
2024	33,782
2025	28,015
Thereafter	55,552
Total	$	258,210