GOODWILL AND INTANGIBLE ASSETS

(a) Goodwill

We evaluate the recoverability of goodwill in the fourth quarter of each year or sooner if events or changes in circumstances indicate that the carrying amount may exceed its fair value. These analyses did not result in an impairment charge during the periods presented.

Goodwill by reportable segments during 2018 and 2017 was as follows (in thousands):



	Recovery Audit Services – Americas			Recovery Audit Services – Europe/Asia- Pacific			Adjacent Services		Total
Balance, January 1, 2017	$	10,755		$	680		$	2,388	$	13,823
Goodwill recorded in connection with business combinations	2,685			869			140		3,694
Foreign currency translation	—			131			—		131
Balance, December 31, 2017	13,440			1,680			2,528		17,648
Goodwill recorded in connection with business combinations	(20		)	—			—		(20		)
Foreign currency translation	—			(97		)	—		(97		)
Balance, December 31, 2018	$	13,420		$	1,583		$	2,528	$	17,531

During 2017, we recorded goodwill of $3.6 million in our Recovery Audit Services - Americas and Recovery Audit Services - Europe/Asia-Pacific segments in conjunction with the acquisition of Cost & Compliance Associates, LLC and Cost & Compliance Associates Limited respectively, (collectively "C&CA") on February 23, 2017. C&CA is a commercial recovery audit and contract compliance firm with operations in the U.S. and the UK (refer to Note 12 below).

(b) Intangible Assets

Intangible assets consist principally of amounts we have assigned to customer relationships, trademarks, non-compete agreements and trade names in conjunction with business acquisitions. Certain of our intangible assets associated with acquisitions of assets or businesses by our foreign subsidiaries are denominated in the local currency of such subsidiary and therefore are subject to foreign currency ("FX") adjustments. We present the amounts for these transactions in United States dollars utilizing foreign currency exchange rates as of the respective balance sheet dates.

Amortization expense relating to intangible assets was $3.4 million in 2018, $3.6 million in 2017 and $1.8 million in 2016. As of December 31, 2018 and based on our current amortization methods and current levels of intangible assets, we project amortization expense relating to intangible assets for the next five years will be $3.5 million in 2019, $3.1 million in 2020, $1.7 million in 2021, $0.7 million in 2022 and $0.7 million in 2023. We use accelerated amortization methods for customer relationships and trade names, and straight-line amortization for non-compete agreements and trademarks.

Changes in noncurrent intangible assets during 2018 and 2017 were as follows (in thousands):



	Customer Relationships			Trademarks			Non- compete Agreements			Software			Trade Names			Total
Gross carrying amount:
Balance, January 1, 2017	$	36,573		$	853		$	1,322		$	6,178		$	2,200		$	47,126
Acquisition of C&CA Assets	9,556			135			1,232			—			—			10,923
FX adjustments and other	777			38			75			—			—			890
Balance, December 31, 2017	46,906			1,026			2,629			6,178			2,200			58,939
FX adjustments and other	(547		)	138			(51		)	(164		)	—			(624		)
Balance, December 31, 2018	$	46,359		$	1,164		$	2,578		$	6,014		$	2,200		$	58,315
Accumulated amortization:
Balance, January 1, 2017	$	(31,481	)	$	(853	)	$	(1,322	)	$	(272	)	$	(2,200	)	$	(36,128	)
Amortization expense	(1,796		)	(22		)	(204		)	(1,612		)	—			(3,634		)
FX adjustments and other	(585		)	(38		)	(76		)	—			—			(699		)
Balance, December 31, 2017	(33,862		)	(913		)	(1,602		)	(1,884		)	(2,200		)	(40,461		)
Amortization expense	(1,607		)	(67		)	(246		)	(1,475		)	—			(3,395		)
FX adjustments and other	409			(22		)	51			48			—			486
Balance, December 31, 2018	$	(35,060	)	$	(1,002	)	$	(1,797	)	$	(3,311	)	$	(2,200	)	$	(43,370	)
Net carrying amount:
Balance, December 31, 2017	$	13,044		$	113		$	1,027		$	4,294		$	—		$	18,478
Balance, December 31, 2018	$	11,299		$	162		$	781		$	2,703		$	—		$	14,945
Estimated useful life (years)	10-15 years			4-5 years			5 years			4 years			4-5 years