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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets arose from an acquisition made prior to 2013, the acquisition of KVH Media Group (acquired as Headland Media Limited) in May 2013 and the acquisition of Videotel in July 2014. Intangibles arising from the acquisition made prior to 2013 are being amortized on a straight-line basis over an estimated useful life of 7 years. Intangibles arising from the acquisition of KVH Media Group are being amortized on a straight-line basis over the estimated useful life of: (i) 10 years for acquired subscriber relationships, (ii) 15 years for distribution rights, (iii) 3 years for internally developed software and (iv) 2 years for proprietary content. Intangibles arising from the acquisition of Videotel are being amortized on a straight-line basis over the estimated useful life of: (i) 8 years for acquired subscriber relationships, (ii) 5 years for favorable leases, (iii) 4 years for internally developed software and (iv) 5 years for proprietary content. The intangibles arising from the KVH Media Group and Videotel acquisitions were recorded in pounds sterling and fluctuations in exchange rates cause these amounts to increase or decrease from time to time. In January 2017, the Company completed the acquisition of certain subscriber relationships from a third party. This acquisition did not meet the definition of a business under ASC 2017-01, Business Combinations (Topic 805)-Clarifying the Definition of a Business, which the Company adopted on October 1, 2016. The Company ascribed $100 of the initial purchase price to the acquired subscriber relationships definite-lived intangible assets with an initial estimated useful life of 10 years. Under the asset purchase agreement, the purchase price includes a component of contingent consideration under which the Company is required to pay a percentage of recurring revenues received from the acquired subscriber relationships through 2026 up to a maximum annual payment of $114. As of December 31, 2018, the carrying value of the intangible assets acquired in the asset acquisition was $177. As the acquisition did not represent a business combination, the contingent consideration arrangement is recognized only when the contingency is resolved and the consideration is paid or becomes payable. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships. During the year ended December 31, 2018, $44 additional consideration was earned under the contingent consideration arrangement. Acquired intangible assets are subject to amortization. The following table summarizes other intangible assets as of December 31, 2018 and 2017, respectively:
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value
December 31, 2018 |  |  |  |  |
Subscriber relationships | $ | 17,570 |  |  | $ | 10,337 |  |  | $ | 7,233 |
Distribution rights | 4,233 |  |  | 1,731 |  |  | 2,502 |
Internally developed software | 2,327 |  |  | 2,327 |  |  | — |
Proprietary content | 8,164 |  |  | 7,439 |  |  | 725 |
Intellectual property | 2,284 |  |  | 2,284 |  |  | — |
Favorable lease | 643 |  |  | 585 |  |  | 58 |
| $ | 35,221 |  |  | $ | 24,703 |  |  | $ | 10,518 |
December 31, 2017 |  |  |  |  |
Subscriber relationships | $ | 17,912 |  |  | $ | 8,347 |  |  | $ | 9,565 |
Distribution rights | 4,385 |  |  | 1,450 |  |  | 2,935 |
Internally developed software | 2,324 |  |  | 2,206 |  |  | 118 |
Proprietary content | 8,223 |  |  | 5,908 |  |  | 2,315 |
Intellectual property | 2,284 |  |  | 2,284 |  |  | — |
Favorable lease | 648 |  |  | 461 |  |  | 187 |
| $ | 35,776 |  |  | $ | 20,656 |  |  | $ | 15,120 |
Amortization expense related to intangible assets was $4,047, $4,312, and $4,956 for years ended December 31, 2018, 2017, and 2016, respectively. Amortization expense related to intangible assets for the years ended years ended December 31, 2018, 2017, and 2016 was as follows:
Expense Category | 2018 |  | 2017 |  | 2016
Cost of service sales | $ | 1,532 |  |  | $ | 1,477 |  |  | $ | 2,068 |
General administrative expense | 2,515 |  |  | 2,835 |  |  | 2,888 |
Total amortization expense | $ | 4,047 |  |  | $ | 4,312 |  |  | $ | 4,956 |
As of December 31, 2018, the total weighted average remaining useful lives of the definite-lived intangible assets was 3.3 years and the weighted average remaining useful lives by the definite-lived intangible asset category are as follows:
Intangible Asset | Weighted Average Remaining Useful Life in Years
Subscriber relationships | 3.9
Distribution rights | 9.3
Proprietary content | 0.5
Favorable lease | 0.5
Estimated future amortization expense for intangible assets recorded by the Company at December 31, 2018 is as follows:
Years ending December 31, | Amortization Expense
2019 | $ | 2,957 |
2020 | 2,174 |
2021 | 2,174 |
2022 | 1,432 |
2023 | 529 |
Thereafter | 1,252 |
Total amortization expense | $ | 10,518 |
The changes in the carrying amount of intangible assets during the year ended December 31, 2018 is as follows:
| 2018
Balance at January 1 | $ | 15,120 |
Amortization expense | (4,047 | )
Intangibles assets acquired in asset acquisition | 44 |
Foreign currency translation adjustment | (599 | )
Balance at December 31 | $ | 10,518 |
Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. All of the Company's goodwill as of December 31, 2018 relates to its mobile connectivity reportable segment. None of the Company's goodwill is deductible for tax purposes. The changes in the carrying amount of goodwill during the year ended December 31, 2018 is as follows:
| Goodwill
Balance at January 1, 2017 | $ | 31,343 |
Foreign currency translation adjustment | 2,529 |
Balance at December 31, 2017 | 33,872 |
Foreign currency translation adjustment | (1,659 | )
Balance at December 31, 2018 | $ | 32,213 |

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