Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

5.    Goodwill and Intangible Assets

Goodwill

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

(dollars in millions)	IT Services and Hardware			Entertainment and Communications		Total Company
Goodwill, balance as of December 31, 2019	$	148.1		$	12.4	$	160.5
Activity during the year:
Currency translations		(1.2	)		—		(1.2	)
Goodwill, balance as of September 30, 2020	$	146.9		$	12.4	$	159.3

No impairment losses were recognized in goodwill for the three and nine months ended September 30, 2020 and 2019.

Intangible Assets

The Company’s intangible assets consisted of the following:

	September 30, 2020							December 31, 2019
	Gross Carrying		Accumulated			Net		Gross Carrying		Accumulated			Net
(dollars in millions)	Amount (a)		Amortization			Amount		Amount (a)		Amortization			Amount
Customer relationships	$	140.0	$	(36.0	)	$	104.0	$	140.8	$	(28.4	)	$	112.4
Trade names		40.9		(8.4	)		32.5		41.3		(6.0	)		35.3
Technology		9.8		(2.9	)		6.9		9.9		(2.2	)		7.7
Total	$	190.7	$	(47.3	)	$	143.4	$	192.0	$	(36.6	)	$	155.4

(a) Change in gross carrying amounts is due to foreign currency translation on certain intangible assets.

Amortization expense for intangible assets was $3.6 million and $10.8 million for the three and nine months ended September 30, 2020, respectively. Amortization expense for intangible assets was $3.7 million and $11.0 million for the three and nine months ended September 30, 2019, respectively. In addition to amortization expense, the changes in definite-lived intangible assets from December 31, 2019 to September 30, 2020 are due to foreign currency translation. No impairment losses were recognized for the three and nine months ended September 30, 2020 and 2019.

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, 2020	$	3.6
2021		14.1
2022		13.9
2023		13.5
2024		13.3
Thereafter		85.0
Total	$	143.4

During the third quarter of 2020, the Company participated in Auction 105 conducted by the FCC for Priority Access Licenses of the Citizens Band Radio Service Spectrum (“CBRS”). In September 2020, the FCC announced that the Company was the winning bidder of 56 wireless spectrum licenses for an aggregate price of $6.2 million. Prior to the inception of Auction 105 in June 2020, the Company deposited $1.7 million with the FCC. The deposit is included in “Other current assets” as of September 30, 2020 in the Condensed Consolidated Balance Sheets. On October 1, 2020, the Company paid the FCC the remaining $4.5 million of the purchase price for the licenses won in the auction.  The Company expects the licenses to be transferred in the fourth quarter of 2020.