XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.2.2
Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 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:

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to prior year Merger

 

 

2.5

 

 

 

2.2

 

 

 

4.7

 

Acquisition of Agile

 

 

 

 

 

35.3

 

 

 

35.3

 

Adjustments to postretirement and other benefit obligations (Note 8)

 

 

19.6

 

 

 

15.4

 

 

 

35.0

 

Currency translations

 

 

(2.3

)

 

 

 

 

 

(2.3

)

Goodwill, balance as of September 30, 2022

 

$

177.2

 

 

$

541.8

 

 

$

719.0

 

 

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 is complete at September 30, 2022. In addition, goodwill in the Network segment increased by $35.3 million due to the acquisition of Agile. See Note 2 for further information related to the Agile acquisition.

 

No impairment losses were recognized in goodwill for the three and nine months ended September 30, 2022, the Successor period in 2021 and the Predecessor periods included within the three and nine months ended September 30, 2021.


 

Intangible Assets

The Company’s intangible assets consisted of the following:

 

 

 

September 30, 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

 

$

861.4

 

 

$

(114.2

)

 

$

747.2

 

 

$

850.0

 

 

$

(36.2

)

 

$

813.8

 

      Trade names

 

 

109.3

 

 

 

(16.9

)

 

 

92.4

 

 

 

108.0

 

 

 

(5.0

)

 

 

103.0

 

      Technology

 

 

6.1

 

 

 

(0.8

)

 

 

5.3

 

 

 

5.0

 

 

 

(0.2

)

 

 

4.8

 

  Total

 

 

976.8

 

 

 

(131.9

)

 

 

844.9

 

 

 

963.0

 

 

 

(41.4

)

 

 

921.6

 

Intangible assets not subject to amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      FCC licenses and spectrum usage rights

 

 

6.9

 

 

 

 

 

 

6.9

 

 

 

6.7

 

 

 

 

 

 

6.7

 

Total intangible assets

 

$

983.7

 

 

$

(131.9

)

 

$

851.8

 

 

$

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. As a result of the acquisition of Agile, the Company recorded $19.4 million of finite-lived intangible assets representing the preliminary fair value at the Agile Acquisition date. See Note 2 for additional information regarding the Merger and acquisition of Agile. The change in gross carrying amounts for finite-lived intangible assets is also 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 $31.2 million and $91.2 million for the three and nine months ended September 30, 2022, respectively. Amortization expense for finite-lived intangible assets was $8.4 million in the Successor period in 2021. In the Predecessor periods included within the three and nine months ended September 30, 2021, amortization expense for finite-lived intangible assets was $2.7 million and $9.9 million, respectively. In addition to amortization expense, the changes in finite-lived intangible assets from December 31, 2021 to September 30, 2022 are due to foreign currency translation. No impairment losses were recognized on intangible assets for the three and nine months ended September 30, 2022, the Successor period in 2021 and the Predecessor periods included within the three and nine months ended September 30, 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)

 

 

 

 

Three months ended December 31, 2022

 

$

30.6

 

2023

 

 

115.1

 

2024

 

 

105.8

 

2025

 

 

93.6

 

2026

 

 

86.2

 

Thereafter

 

 

413.6

 

Total

 

$

844.9