Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company changed the presentation of its segments in the third quarter of 2019 into the following eight reportable segments: Kaplan International, Higher Education, Test Preparation, Professional (U.S.), Television Broadcasting, Manufacturing, Healthcare and SocialCode (see Note 16).

In the third quarter of 2018, the Healthcare business recorded an intangible asset impairment charge of $7.9 million following the decision to discontinue the use of the Celtic tradename. The fair value of the intangible asset was estimated using an income approach.

Amortization of intangible assets for the three months ended September 30, 2019 and 2018 was $13.6 million and $12.3 million, respectively. Amortization of intangible assets for the nine months ended September 30, 2019 and 2018 was $39.5 million and $34.1 million, respectively. Amortization of intangible assets is estimated to be approximately $14 million for the remainder of 2019, $53 million in 2020, $47 million in 2021, $41 million in 2022, $33 million in 2023 and $57 million thereafter.

The changes in the carrying amount of goodwill, by segment, were as follows:

(in thousands)	Education			Television Broadcasting		Manufacturing			Healthcare		SocialCode		Other Businesses			Total
Balance as of December 31, 2018
Goodwill	$	1,128,699		$	190,815	$	231,479		$	69,626	$	15,860	$	7,685		$	1,644,164
Accumulated impairment losses	(331,151		)	—		(7,616		)	—		—		(7,685		)	(346,452		)
	797,548			190,815		223,863			69,626		15,860		—			1,297,712
Acquisitions	6,391			—		2,714			8,283		—		45,999			63,387
Foreign currency exchange rate changes	(15,706		)	—		—			—		—		—			(15,706		)
Balance as of September 30, 2019
Goodwill	1,119,384			190,815		234,193			77,909		15,860		53,684			1,691,845
Accumulated impairment losses	(331,151		)	—		(7,616		)	—		—		(7,685		)	(346,452		)
	$	788,233		$	190,815	$	226,577		$	77,909	$	15,860	$	45,999		$	1,345,393

The changes in carrying amount of goodwill at the Company’s education division were as follows:

(in thousands)	Kaplan International			Higher Education			Test Preparation			Professional (U.S.)			Total
Balance as of December 31, 2018
Goodwill	$	583,424		$	174,564		$	166,920		$	203,791		$	1,128,699
Accumulated impairment losses	—			(111,324		)	(102,259		)	(117,568		)	(331,151		)
	583,424			63,240			64,661			86,223			797,548
Acquisitions	6,391			—			—			—			6,391
Foreign currency exchange rate changes	(15,760		)	—			—			54			(15,706		)
Balance as of September 30, 2019
Goodwill	574,055			174,564			166,920			203,845			1,119,384
Accumulated impairment losses	—			(111,324		)	(102,259		)	(117,568		)	(331,151		)
	$	574,055		$	63,240		$	64,661		$	86,277		$	788,233

Other intangible assets consist of the following:

		As of September 30, 2019						As of December 31, 2018
(in thousands)	Useful Life Range	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized Intangible Assets
Student and customer relationships	2–10 years	$	291,662	$	136,319	$	155,343	$	282,761	$	114,429	$	168,332
Trade names and trademarks	2–10 years	92,568		46,204		46,364		87,285		39,825		47,460
Network affiliation agreements	10 years	17,400		4,712		12,688		17,400		3,408		13,992
Databases and technology	3–6 years	30,274		12,221		18,053		27,041		8,471		18,570
Noncompete agreements	2–5 years	1,353		931		422		1,088		838		250
Other	1–8 years	24,890		12,367		12,523		24,530		9,873		14,657
		$	458,147	$	212,754	$	245,393	$	440,105	$	176,844	$	263,261
Indefinite-Lived Intangible Assets
Trade names and trademarks		$	97,527					$	80,102
Franchise agreements		28,000						—
FCC licenses		18,800						18,800
Licensure and accreditation		150						150
		$	144,477					$	99,052