Goodwill and Intangible Assets

Goodwill

The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2019:



	Amounts
Balance at December 31, 2018	$	15,031
Foreign currency translation adjustment	(364		)
Balance at September 30, 2019	$	14,667

Intangible Assets

The changes in the carrying amount of intangible assets during the nine months ended September 30, 2019 are as follows:



	Amounts
Balance at December 31, 2018	$	5,661
Amortization expense	(732		)
Intangible assets acquired in asset acquisition	71
Foreign currency translation adjustment	(160		)
Balance at September 30, 2019	$	4,840

Intangible assets arose from an acquisition made prior to 2013 and the acquisition of KVH Media Group (acquired as Headland Media Limited) in May 2013. 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. Remaining 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 and (ii) 15 years for distribution rights. The intangibles arising from the KVH Media Group were recorded in pounds sterling and fluctuations in exchange rates could 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 included a component of contingent consideration under which the Company was 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 September 30, 2019, the carrying value of the intangible assets acquired in the asset acquisition was $249. 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 nine months ended September 30, 2019, $71 of additional consideration was paid under the contingent consideration arrangement.

Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at September 30, 2019 and December 31, 2018, respectively:



	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
September 30, 2019
Subscriber relationships	$	7,667	$	5,050	$	2,617
Distribution rights	4,155		1,932		2,223
Internally developed software	446		446		—
Proprietary content	153		153		—
Intellectual property	2,284		2,284		—
	$	14,705	$	9,865	$	4,840
December 31, 2018
Subscriber relationships	$	7,678	$	4,519	$	3,159
Distribution rights	4,233		1,731		2,502
Internally developed software	446		446		—
Proprietary content	153		153		—
Intellectual property	2,284		2,284		—
	$	14,794	$	9,133	$	5,661

Amortization expense related to intangible assets for the three and nine months ended September 30, 2019 and 2018 was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Expense Category	2019		2018		2019		2018
General and administrative expense	$	237	$	246	$	732	$	764

As of September 30, 2019, the total weighted average remaining useful lives of the definite-lived intangible assets was 4.7 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	3.7
Distribution rights	8.6

Estimated future amortization expense remaining at September 30, 2019 for intangible assets acquired is as follows:



Remainder of 2019	$	237
2020	947
2021	947
2022	947
2023	524
Thereafter	1,238
Total future amortization expense	$	4,840

For intangible assets, the Company assesses the carrying value of these assets whenever events or circumstances indicate that the carrying value may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset, or asset group, to the future undiscounted cash flows expected to be generated by the asset, or asset group. There were no events or changes in circumstances during the third quarter of 2019 which indicated that an assessment of the impairment of goodwill and intangible assets was required.