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Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2023
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

Goodwill

 

As of March 31, 2023 and December 31, 2022, goodwill in the IT Services and Hardware segment totaled $177.6 million and goodwill in the Network segment totaled $545.9 million. No impairment losses were recognized in goodwill for the three months ended March 31, 2023 and 2022.

Intangible Assets

The Company’s intangible assets consisted of the following:

 

 

 

March 31, 2023

 

 

December 31, 2022

 

 

 

Gross Carrying

 

 

Accumulated

 

 

Net

 

 

Gross Carrying

 

 

Accumulated

 

 

Net

 

(dollars in millions)

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

Intangible assets subject to amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

862.1

 

 

$

(165.2

)

 

$

696.9

 

 

$

862.1

 

 

$

(140.7

)

 

$

721.4

 

Trade names

 

 

109.5

 

 

 

(24.4

)

 

 

85.1

 

 

 

109.5

 

 

 

(20.5

)

 

 

89.0

 

Technology

 

 

6.0

 

 

 

(1.3

)

 

 

4.7

 

 

 

6.0

 

 

 

(1.0

)

 

 

5.0

 

  Total

 

 

977.6

 

 

 

(190.9

)

 

 

786.7

 

 

 

977.6

 

 

 

(162.2

)

 

 

815.4

 

Intangible assets not subject to amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FCC licenses and spectrum usage rights

 

 

7.0

 

 

 

—

 

 

 

7.0

 

 

 

6.9

 

 

 

—

 

 

 

6.9

 

Perpetual licenses

 

 

6.8

 

 

 

—

 

 

 

6.8

 

 

 

6.8

 

 

 

—

 

 

 

6.8

 

Total intangible assets

 

$

991.4

 

 

$

(190.9

)

 

$

800.5

 

 

$

991.3

 

 

$

(162.2

)

 

$

829.1

 

 

 

The finite-lived intangible assets are amortized over their useful lives based on a number of assumptions including the estimated period of economic benefit and utilization.

 

Amortization expense for finite-lived intangible assets was $28.7 million and $30.1 million for the three months ended March 31, 2023 and 2022, respectively. No impairment losses were recognized on intangible assets for the three months ended March 31, 2023 and 2022.

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

 

Customer relationships

 

15 years

Trade names

 

3 to 10 years

Technology

 

7 years

 

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

 

(dollars in millions)

 

 

 

Nine months ended December 31, 2023

 

$

86.0

 

2024

 

 

105.4

 

2025

 

 

93.6

 

2026

 

 

86.5

 

2027

 

 

79.3

 

Thereafter

 

 

335.9

 

Total

 

$

786.7