Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill by segment consisted of the following:



(in thousands)	December 31, 2019		December 31, 2018
Wireless	$	146,383	$	146,383
Broadband	2,687		114
Total Goodwill	$	149,070	$	146,497

We acquired Big Sandy Broadband, Inc. (“Big Sandy”) on February 28, 2019. The $10 million acquisition price was allocated as follows: $4.6 million of property, plant and equipment; $2.8 million of subscriber relationships; and $2.6 million of goodwill.

Other intangible assets consisted of the following:



	December 31, 2019							December 31, 2018
(in thousands)	Gross Carrying Amount		Accumulated Amortization and Other			Net		Gross Carrying Amount		Accumulated Amortization and Other			Net
Indefinite-lived intangibles:
Cable franchise rights	$	64,334	$	—		$	64,334	$	64,334	$	—		$	64,334
FCC spectrum licenses	13,839		—			13,839		—		—			—
Railroad crossing rights	141		—			141		141		—			141
Total indefinite-lived intangibles	78,314		—			78,314		64,475		—			64,475

Finite-lived intangibles:
Sprint affiliate contract expansion - Wireless	455,305		(226,712		)	228,593		455,305		(167,830		)	287,475
FCC spectrum licenses	4,659		(97		)	4,562		—		—			—
Favorable leases - Wireless	—		—			—		15,743		(1,919		)	13,824
Acquired subscribers - Cable	28,065		(25,600		)	2,465		25,265		(25,250		)	15
Other intangibles	463		(250		)	213		463		(223		)	240
Total finite-lived intangibles	488,492		(252,659		)	235,833		496,776		(195,222		)	301,554
Total intangible assets	$	566,806	$	(252,659	)	$	314,147	$	561,251	$	(195,222	)	$	366,029

In 2016, we acquired nTelos Holdings Corp. and immediately transferred certain of the acquired assets to Sprint in an interrelated nonmonetary exchange. In the exchange, we received a corresponding expansion of our Sprint Affiliate Area, future billings associated with Sprint subscribers already in that expanded area, and an increase in the price that Sprint would pay to buy our Wireless asset group in the event that either party chooses not to renew the affiliate agreement. Sprint also agreed to waive up to $4.2 million of our monthly management fee, not to exceed $255.6 million in total, over a multi-year period. We accounted for these collective rights as an ACE intangible, which is amortized over the expected benefit period and further reduced as management fees are waived by Sprint. We realized management fee waivers of $38.8 million, $37.8 million and $36.1 million for the years ended December 31, 2019, 2018 and 2017, respectively, and $137.2 million since the date of the business combination.

During 2017 and 2018, we entered into purchase agreements with Sprint to further expand our affiliate territory to include areas around Parkersburg, West Virginia, and Richmond, Virginia, respectively. The relevant portion of these payments were also capitalized as ACE intangible assets.

Amounts paid in connection with the acquisition of a business are presented as amortization expense in our income statement. Amounts paid to Sprint outside of a business combination are accounted for as consideration paid to a customer with amortization presented as a reduction of Service and other revenue in our consolidated statements of comprehensive income.

During the third quarter of 2019, the Company purchased certain indefinite-lived spectrum licenses for $13.8 million and finite-lived spectrum licenses for $4.7 million.

For the years ended December 31, 2019, 2018 and 2017, amortization of intangible assets was approximately $20.5 million, $24.6 million and $27.5 million, respectively.

Our finite-lived intangible assets are amortized over the following estimated useful lives:



		Estimated Useful Life
Affiliate contract expansion - Wireless		4 - 14 years
FCC spectrum licenses		18 - 20 years
Acquired subscribers - Broadband		3 - 10 years
Other intangibles		15 - 20 years

The following table summarizes expected amortization of intangible assets at December 31, 2019:



(in thousands)	Amortization of Intangible Assets (1)

2020	$	17,857
2021	15,153
2022	13,709
2023	13,499
2024	13,499
Thereafter	43,772
Total	$	117,489

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(1) The Company expects to further reduce affiliate contract expansion by approximately $118.4 million as waived management fees are received from Sprint.