Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

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 test. 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, 2019	$	483,584
Acquisition	$	1,094
Other		(219	)
Balance at December 31, 2019	$	484,459
Acquisition		24,315
Other		(219	)
Balance at December 31, 2020	$	508,555

The changes noted as “other” in the table above for both 2020 and 2019 refer to the amortization of the income tax benefit of tax goodwill in excess of financial statement goodwill.

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

						Net
	Gross		Accumulated			Carrying
	Amount		Amortization			Value		Life
As of December 31, 2020:
Customer relationships	$	196,806	$	(36,765	)	$	160,041	5-15 years

Agent relationships	$	2,432	$	(51	)	$	2,381	4 years

Trade name	$	2,921	$	(1,390	)	$	1,531	18 months

Total	$	202,159	$	(38,206	)	$	163,953

						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

The above intangible assets are amortized using the straight-line method. Amortization expense was $13.8 million for each of the years ended December 31, 2020 and 2019. The remaining weighted average life of all definite lived intangible assets as of December 31, 2020 was 10.98 years. Amortization expense for the next five years is as follows (in thousands):

	Total
Year 1	$	17,943
Year 2		17,270
Year 3		16,675
Year 4		15,030
Year 5		14,472