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Goodwill and Other Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets, Net |
8. | Goodwill and Other Intangible Assets, Net
The Company has recorded goodwill as a result of its various business combinations. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the tangible assets and intangible assets acquired net of liabilities assumed, including noncontrolling interests. Changes in the Company’s goodwill balances recognized during the years ended December 31, 2021 and 2020 were as follows (in thousands):
|  | 1/1/2021 |  |  | Foreign currency translation |  |  | 12/31/2021 |
U.S. Secure Services |  | $ | 316,366 |  |  | $ | — |  |  | $ | 316,366 |
Electronic Monitoring and Supervision Services |  |  | 289,570 |  |  |  | — |  |  |  | 289,570 |
Reentry Services |  |  | 148,873 |  |  |  | — |  |  |  | 148,873 |
International Services |  |  | 441 |  |  |  | (25 | ) |  |  | 416 |
Total Goodwill |  | $ | 755,250 |  |  | $ | (25 | ) |  | $ | 755,225 |
|  | 1/1/2020 |  |  | Impairment charges [1] |  |  | Foreign currency translation |  |  | 12/31/2020 |
U.S. Secure Services |  | $ | 316,366 |  |  | $ | — |  |  | $ | — |  |  | $ | 316,366 |
Electronic Monitoring and Supervision Services |  |  | 289,570 |  |  |  | — |  |  |  | — |  |  |  | 289,570 |
Reentry Services |  |  | 170,019 |  |  |  | (21,146 | ) |  |  | — |  |  |  | 148,873 |
International Services |  |  | 401 |  |  |  | - |  |  |  | 40 |  |  |  | 441 |
Total Goodwill |  | $ | 776,356 |  |  | $ | (21,146 | ) |  | $ | 40 |  |  | $ | 755,250 |
[1] The Company recorded an impairment charge in its Reentry Services reporting unit for the year ended December 31, 2020. Intangible assets consisted of the following as of December 31, 2021 and 2020 (in thousands):
|  | Weighted |  |  | December 31, 2021 |  |  | December 31, 2020 |
|  | Average Useful Life (years) |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Facility management contracts |  |  | 16.3 |  |  | $ | 308,369 |  |  | $ | (189,163 | ) |  | $ | 119,206 |  |  | $ | 308,398 |  |  | $ | (168,848 | ) |  | $ | 139,550 |
Technology |  |  | 7.3 |  |  |  | 33,700 |  |  |  | (31,982 | ) |  |  | 1,718 |  |  |  | 33,700 |  |  |  | (30,703 | ) |  |  | 2,997 |
Trade names |  | Indefinite |  |  |  | 45,200 |  |  |  | — |  |  |  | 45,200 |  |  |  | 45,200 |  |  |  | — |  |  |  | 45,200 |
Total acquired intangible assets |  |  |  |  |  | $ | 387,269 |  |  | $ | (221,145 | ) |  | $ | 166,124 |  |  | $ | 387,298 |  |  | $ | (199,551 | ) |  | $ | 187,747 |
The accounting for recognized intangible assets is based on the useful lives to the reporting entity. Intangible assets with finite useful lives are amortized over their useful lives and intangible assets with indefinite useful lives are not amortized. The Company estimates the useful lives of its intangible assets taking into consideration (i) the expected use of the asset by the Company, (ii) the expected useful lives of other related assets or groups of assets, (iii) legal or contractual limitations, (iv) the Company's historical experience in renewing or extending similar arrangements, (v) the effects of obsolescence, demand, competition and other economic factors and (vi) the level of maintenance expenditures required to obtain the expected cash flows from the asset. Amortization expense was $21.6 million, $22.3 million and $22.3 million for the years ended December 31, 2021, 2020 and 2019, respectively, and primarily related to the U.S. Secure Services and Reentry Services segments’ amortization of intangible assets for acquired management contracts. The Company relies on its historical experience in determining the useful life of facility management contracts. The Company makes assumptions related to acquired facility management contracts based on the competitive environment for individual contracts, our historical success rates in retaining contracts, the supply of available beds in the market, changes in legislation, the projected profitability of the facilities and other market conditions. As of December 31, 2021, the weighted average period before the next contract renewal or extension for the facility management contracts was approximately 2.0 years. Although the facility management contracts acquired have renewal and extension terms in the near term, the Company has historically maintained these relationships beyond the contractual periods. Estimated amortization expense related to the Company’s finite-lived intangible assets for 2022 through 2026 and thereafter is as follows (in thousands):
Fiscal Year |  | Total Amortization Expense |
2022 |  | $ | 16,307 |
2023 |  |  | 13,484 |
2024 |  |  | 9,751 |
2025 |  |  | 9,263 |
2026 |  |  | 7,170 |
Thereafter |  |  | 64,949 |
|  | $ | 120,924 |

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