Goodwill and Intangible Assets

Goodwill

The changes in the Company's goodwill consisted of the following:



	IT Services and Hardware			Entertainment and Communications		Total Company
(dollars in millions)
Goodwill, balance as of December 31, 2017	$	148.8		$	2.2	$	151.0
Activity during the year
Adjustments to prior year acquisitions	0.7			—		0.7
Mergers	—			7.6		7.6
Currency translations	(1.3		)	—		(1.3		)
Goodwill, balance as of September 30, 2018	$	148.2		$	9.8	$	158.0

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups CLEC revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. As a result of the change, $9.7 million of goodwill related to CBTS Technology Solutions LLC ("CBTS TS") was reclassified from the Entertainment and Communications segment to the IT Services and Hardware segment for the period ending December 31, 2017. For further information related to these business segments see Note 14.

During the nine months ended September 30, 2018, goodwill in the Entertainment and Communications segment increased by $7.6 million due to the merger of Hawaiian Telcom. For further information related to the merger see Note 4.

No impairment losses were recognized in goodwill for the three and nine months ended September 30, 2018 and 2017.

Intangible Assets

The Company’s intangible assets consisted of the following:



	September 30, 2018							December 31, 2017
	Gross Carrying		Accumulated			Net		Gross Carrying		Accumulated			Net
(dollars in millions)	Amount (a)		Amortization			Amount		Amount (a)		Amortization			Amount
Customer relationships	$	140.9	$	(15.3	)	$	125.6	$	116.0	$	(8.9	)	$	107.1
Trade names	41.3		(1.9		)	39.4		15.9		(0.4		)	15.5
Technology	9.9		(1.0		)	8.9		9.9		(0.2		)	9.7
Total	$	192.1	$	(18.2	)	$	173.9	$	141.8	$	(9.5	)	$	132.3

(a) Change in gross carrying amounts is due to foreign currency translation on intangible assets related to OnX and intangible assets acquired in conjunction with the merger of Hawaiian Telcom. See Note 4 for further information.

Amortization expense for intangible assets subject to amortization was $3.8 million and $8.7 million for the three and nine months ended September 30, 2018, respectively. Amortization expense for the three and nine months ended September 30, 2017 was insignificant. No impairment losses were recognized for the three and nine months ended September 30, 2018 and 2017.

The estimated useful lives for each intangible asset class are as follows:



Customer relationships	8	to	15	years
Trade names	10	to	15	years
Technology			10	years

The annual estimated amortization expense for future years is as follows:



(dollars in millions)
Three months ended December 31, 2018	$	3.7
2019	14.8
2020	14.5
2021	14.3
2022	14.0
Thereafter	112.6
Total	$	173.9