Goodwill and Other Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets [Text Block]

Goodwill and Other Intangible Assets

We review goodwill at least annually for impairment, or whenever events or circumstances indicate that the carrying value of long-lived assets may not be fully recoverable. We have elected to perform this annual review as of October 31st of each calendar year. Effective July 1, 2020, we realigned from two to three reporting units. As a result of a change in our reporting units, we conducted an impairment analysis prior to the change and as a part of reallocating goodwill to the new reporting units. The results of these analyses identified no impairments during the nine months ended September 30, 2020.

The change in the carrying amount of goodwill during the year ended December 31, 2019 and nine months ended September 30, 2020 are as follows (in thousands):

	Goodwill Balance
Goodwill at December 31, 2018	$	1,085,806
Acquisitions	105,453
Goodwill at December 31, 2019	1,191,259
Acquisition fair value adjustment	11
Goodwill at September 30, 2020	$	1,191,270

Other intangible assets consisted of the following (in thousands):

	September 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Other intangible assets:
Contract and program intangible assets	$	402,532	$	237,101	$	165,431	$	402,532	$	221,437	$	181,095
Capitalized software	56,157		40,988		15,169		52,411		36,728		15,683
Total other intangible assets—net	$	458,689	$	278,089	$	180,600	$	454,943	$	258,165	$	196,778

Amortization expense relating to intangible assets for the three months ended September 30, 2020 and 2019 was $8.2 million and $6.1 million, respectively. Amortization expense relating to intangible assets for the nine months ended September 30, 2020 and 2019 was $21.2 million and $18.0 million, respectively. Amortization expense for the three and nine months ended September 30, 2020 includes an impairment of $1.4 million for capitalized software.

We estimate that we will have the following amortization expense for the future periods indicated below (in thousands):

For the remaining three months ending December 31, 2020	$	6,377
For the year ending:
December 31, 2021	$	23,880
December 31, 2022	$	21,254
December 31, 2023	$	17,640
December 31, 2024	$	15,567
December 31, 2025	$	13,626