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
	December 31, 2018			December 31, 2017			December 31, 2018		December 31, 2017		December 31, 2018			December 31, 2017
(dollars in millions)
Goodwill, beginning balance	$	148.8		$	12.1		$	2.2	$	2.2	$	151.0		$	14.3
Activity during the year
Adjustments to prior year acquisitions	0.7			—			—		—		0.7			—
Acquisitions	—			137.0			8.8		—		8.8			137.0
Currency translations	(3.5		)	(0.3		)	—		—		(3.5		)	(0.3		)
Goodwill, ending balance	$	146.0		$	148.8		$	11.0	$	2.2	$	157.0		$	151.0

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 16.

During 2018, goodwill in the Entertainment and Communications segment increased by $8.8 million due to the acquisition of Hawaiian Telcom. For further information related to the acquisition see Note 4.

During 2017, goodwill increased by $4.6 million and $132.4 million for the IT Services and Hardware segment related to the acquisitions of SunTel and OnX, respectively. For further information related to these acquisitions see Note 4.

No impairment losses were recognized in goodwill for the years ended December 31, 2018, 2017 and 2016.

Intangible Assets

The Company’s intangible assets consisted of the following:



	December 31, 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	$	139.4	$	(17.8	)	$	121.6	$	116.0	$	(8.9	)	$	107.1
Trade names	40.7		(2.8		)	37.9		15.9		(0.4		)	15.5
Technology	9.9		(1.3		)	8.6		9.9		(0.2		)	9.7
Total	$	190.0	$	(21.9	)	$	168.1	$	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 acquisition of Hawaiian Telcom. See Note 4 for further information.

The intangible assets were established in connection with completed acquisitions. They are amortized over their useful lives based on a number of assumptions including the estimated period of economic benefit and utilization. The weighted-average amortization period for intangible assets acquired in 2018 and 2017 is 15 years and 14 years, respectively.

The amortization expense for intangible assets was $12.4 million, $2.5 million and $0.2 million in 2018, 2017 and 2016 respectively. No impairment losses were recognized on intangible assets for the years ended December 31, 2018, 2017 and 2016.

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)
2019	$	14.6
2020	14.3
2021	14.1
2022	13.8
2023	13.5
Thereafter	97.8
Total	$	168.1