Goodwill and Intangible Assets, net

3 Months Ended

Mar. 28, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

There was no impairment for the three months ended March 28, 2021 and for the three months ended March 29, 2020, respectively.

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 three months ended March 28, 2021. 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 anticipate 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. Based on management’s assessment there has been no material impact to the fair value of goodwill 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):


	March 28, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount


Customer relationships	$	390,900	$	(160,640)	$	230,260
Technology	1,700		(1,700)		—
Trade name	24,800		(9,065)		15,735
Total	$	417,400	$	(171,405)	$	245,995

	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

As of the three months ended March 28, 2021, customer relationships and trade name intangibles had weighted average remaining useful lives of 8.0 years and 5.7 years, respectively.

For the three months ended March 28, 2021 and March 29, 2020, amortization expense was approximately $12.2 million and $8.0 million, respectively.

Estimated amortization expense in future years is expected to be:


	As of
	March 28, 2021
Remainder of 2021	$	37,891
2022	50,089
2023	40,666
2024	33,782
2025	28,015
Thereafter	55,552
Total	$	245,995