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Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

NOTE 7. Goodwill and Other Intangible Assets

In accordance with the FASB issued guidance in the Intangibles-Goodwill and Other Topic of the Codification, we completed the required annual impairment tests. We performed a qualitative assessment on goodwill and determined it was not, more-likely-than-not, that the fair value of our reporting unit was less than its carrying value. There were no accumulated impairment losses of goodwill at the beginning of the period.

The following table presents the carrying amount of goodwill (in thousands):

 

 

Total

 

Balance at January 1, 2018

$

319,272

 

Acquisition

 

164,976

 

Other

 

(664

)

Balance at December 31, 2018

 

483,584

 

Acquisition

 

1,094

 

Other

 

(219

)

Balance at December 31, 2019

$

484,459

 

 

The changes noted as “other” in the table above for both 2019 and 2018 refer to the amortization of the income tax benefit of tax goodwill in excess of financial statement goodwill and the changes in purchase accounting.

 

The components of the “Other intangible assets” are as follows (in thousands):

 

 

 

 

 

 

 

 

Net

 

 

 

Gross

 

Accumulated

 

Carrying

 

 

 

Amount

 

Amortization

 

Value

 

Life

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

144,123

 

$

(23,517

)

$

120,606

 

5-15  years

 

 

 

 

 

 

 

 

 

 

 

Trade name

$

1,300

 

$

(939

)

$

361

 

18 months

 

 

 

 

 

 

 

 

 

 

 

Total

$

145,423

 

$

(24,456

)

$

120,967

 

 

 

 

 

 

 

 

 

 

Net

 

 

 

Gross

 

Accumulated

 

Carrying

 

 

 

Amount

 

Amortization

 

Value

 

Life

As of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

144,123

 

$

(10,563

)

$

133,560

 

5-15  years

 

 

 

 

 

 

 

 

 

 

 

Trade name

$

1,300

 

$

(72

)

$

1,228

 

18 months

 

 

 

 

 

 

 

 

 

 

 

Total

$

145,423

 

$

(10,635

)

$

134,788

 

 

 

The above intangible assets are amortized using the straight-line method. Amortization expense for year ended December 31, 2019 and 2018 was $13.8 million and $5.7 million, respectively. The remaining weighted average life of all definite lived intangible assets as of December 31, 2019 was 10.02 years. Amortization expense for the next five years is as follows (in thousands):

 

 

Total

 

Year 1

$

13,316

 

Year 2

 

12,742

 

Year 3

 

12,700

 

Year 4

 

12,555

 

Year 5

 

10,960