Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

4.    Goodwill and Intangible Assets

Goodwill

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

(dollars in millions)	IT Services and Hardware		Network		Total Company
Goodwill, balance as of December 31, 2021	$	157.4	$	488.9	$	646.3
Activity during the year:
Currency translations		0.6		—		0.6
Goodwill, balance as of March 31, 2022	$	158.0	$	488.9	$	646.9

As mentioned in Note 2, in connection with the Merger, the Company’s assets and liabilities were measured at fair value as of the date of the Merger. The allocation of goodwill to our Network reporting unit and IT Services and Hardware reporting unit continues to be preliminary as of the date of this filing.

No impairment losses were recognized in goodwill for the three months ended March 31, 2022 and 2021.

Intangible Assets

The Company’s intangible assets consisted of the following:

	March 31, 2022							December 31, 2021
	Gross Carrying		Accumulated			Net		Gross Carrying		Accumulated			Net
(dollars in millions)	Amount		Amortization			Amount		Amount		Amortization			Amount
Intangible assets subject to amortization
Customer relationships	$	851.1	$	(62.2	)	$	788.9	$	850.0	$	(36.2	)	$	813.8
Trade names		108.3		(8.9	)		99.4		108.0		(5.0	)		103.0
Technology		5.0		(0.4	)		4.6		5.0		(0.2	)		4.8
Total		964.4		(71.5	)		892.9		963.0		(41.4	)		921.6
Intangible assets not subject to amortization
FCC licenses and spectrum usage rights		6.7		—			6.7		6.7		—			6.7
Total intangible assets	$	971.1	$	(71.5	)	$	899.6	$	969.7	$	(41.4	)	$	928.3

In connection with the Merger, the company recorded $963.0 million of finite-lived intangible assets and $6.6 million of indefinite-lived intangible assets representing the fair values at the Merger Date. See Note 2 for additional information regarding the Merger. The change in gross carrying amounts for finite-lived intangible assets is due to foreign currency translation on finite-lived intangible assets denominated in foreign currency. 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 $30.1 million and $3.6 million for the three months ended March 31, 2022 and 2021, respectively. No impairment losses were recognized on intangible assets for the three months ended March 31, 2022 and 2021.

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, 2022	$	90.1
2023		113.1
2024		103.9
2025		92.2
2026		85.1
Thereafter		408.5
Total	$	892.9