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Note 7 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Text Block]

7. GOODWILL AND INTANGIBLE ASSETS

The carrying amount of goodwill was $928.9 million at September 30, 2022 and $967.9 million at December 31, 2021, with the decrease attributable to $39.9 million of goodwill divested in the Clearwave Fiber transaction on January 1, 2022 and $1.8 million of goodwill divested in other transactions during the three months ended June 30, 2022, partially offset by a $2.7 million increase in goodwill related to a measurement period adjustment associated with the Hargray Acquisition. The Company has not historically recorded any impairment of goodwill.

Intangible assets consisted of the following (dollars in thousands):

		*September 30, 2022*						*December 31, 2021*
	*Useful Life*	*Gross*				*Net*		*Gross*				*Net*
	*Range*	*Carrying*		*Accumulated*		*Carrying*		*Carrying*		*Accumulated*		*Carrying*
	*(in years)*	*Amount*		*Amortization*		*Amount*		*Amount*		*Amortization*		*Amount*
Finite-Lived Intangible Assets
Customer relationships	13.5 – 17	$	784,381	$	204,450	$	579,931	$	857,100	$	153,699	$	703,401
Trademarks and trade names	2.7 – 4.2		11,846		6,177		5,669		13,500		3,852		9,648
Wireless licenses	10 – 15		1,418		250		1,168		1,418		142		1,276
Total finite-lived intangible assets		$	797,645	$	210,877	$	586,768	$	872,018	$	157,693	$	714,325

Indefinite-Lived Intangible Assets
Franchise agreements						$	2,100,546					$	2,139,312
Trade names							800						7,500
Total indefinite-lived intangible assets						$	2,101,346					$	2,146,812

Total intangible assets, net						$	2,688,114					$	2,861,137

The $173.0 million decrease in the net carrying amount of intangible assets from December 31, 2021 to September 30, 2022 included $59.7 million of customer relationships, $8.1 million of trademarks and trade names and $27.7 million of franchise agreements divested in the Clearwave Fiber transaction on January 1, 2022 and an additional $4.0 million of customer relationships, $0.2 million of trademarks and trade names and $11.0 million of franchise agreements divested in other transactions during the three months ended June 30, 2022.

Intangible asset amortization expense was $20.8 million and $23.3 million for the three months ended September 30, 2022 and 2021, respectively, and $62.4 million and $52.8 million for the nine months ended September 30, 2022 and 2021, respectively.

The future amortization of existing finite-lived intangible assets as of September 30, 2022 was as follows (in thousands):

Year Ending December 31,	*Amount*
2022 (remaining three months)	$	20,968
2023		72,618
2024		65,828
2025		60,840
2026		55,326
Thereafter		311,188
Total	$	586,768

Actual amortization expense in future periods may differ from the amounts above as a result of intangible asset acquisitions or divestitures, changes in useful life estimates, impairments or other relevant factors.