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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2021
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 2021 into the following seven reportable segments: Kaplan International, Higher Education, Supplemental Education, Television Broadcasting, Manufacturing, Healthcare and Automotive (see Note 19).
In the third quarter of 2021, as a result of the emergence of the COVID-19 Delta variant and continued weak product demand in the commercial office electrical products and hospitality sectors caused by the COVID-19 pandemic, the Company performed an interim review of the goodwill and indefinite-lived intangibles of the Dekko reporting unit. As a result of the impairment review, the Company recorded a $26.7 million goodwill impairment charge. The Company estimated the fair value of the reporting unit by utilizing a discounted cash flow model. The carrying value of the reporting unit exceeded the estimated fair value, resulting in a goodwill impairment charge for the amount by which the carrying value exceeded the estimated fair value after taking into account the effect of deferred income taxes. Dekko is included in manufacturing.
In the first quarter of 2020, as a result of the uncertainty and challenging operating environment created by the COVID-19 pandemic, the Company performed an interim review of the goodwill, indefinite-lived intangibles and other long-lived assets of the CRG and automotive dealership reporting units and asset groups. As a result of the impairment reviews, the Company recorded a $9.7 million goodwill and indefinite-lived intangible asset impairment charge at CRG and a $6.7 million indefinite-lived intangible asset impairment charge at the auto dealerships. The Company estimated the fair value of the reporting units and indefinite-lived intangible assets by utilizing a discounted cash flow model. The carrying value of the CRG reporting unit and the indefinite-lived intangible assets exceeded the estimated fair value, resulting in a goodwill and indefinite-lived intangible asset impairment charge for the amount by which the carrying value exceeded the estimated fair value. CRG is included in other businesses and the automotive dealerships are included in automotive.
Additional COVID-19 disruptions could result in future adverse changes in projections for future operating results or other key assumptions, such as projected revenue, profit margin, capital expenditures or cash flows associated with fair value estimates and could lead to additional future impairments, which could be material.
In the fourth quarter of 2019, Television Broadcasting recorded an intangible asset impairment charge of $7.8 million related to FCC licenses at two of its stations, due to a decline in local market conditions. The fair value of the intangible asset was estimated using an income approach.
Amortization of intangible assets for the years ended December 31, 2021, 2020 and 2019, was $57.9 million, $56.8 million and $53.2 million, respectively. Amortization of intangible assets is estimated to be approximately $59 million in 2022, $51 million in 2023, $39 million in 2024, $31 million in 2025, $26 million in 2026 and $41 million thereafter.
The changes in the carrying amount of goodwill, by segment, were as follows:
(in thousands)EducationTelevision
Broadcasting		ManufacturingHealthcareAutomotiveOther
Businesses		Total
As of December 31, 2019    
Goodwill$1,140,958 $190,815 $234,993 $98,421 $39,121 $30,423 $1,734,731 
Accumulated impairment losses
(331,151)— (7,616)— — (7,685)(346,452)
 809,807 190,815 227,377 98,421 39,121 22,738 1,388,279 
Measurement period adjustment154 — — — — — 154 
Acquisitions13,022 — — — — 60,928 73,950 
Impairment— — — — — (6,878)(6,878)
Foreign currency exchange rate changes
29,245 — — — — — 29,245 
As of December 31, 2020    
Goodwill1,183,379 190,815 234,993 98,421 39,121 91,351 1,838,080 
Accumulated impairment losses
(331,151)— (7,616)— — (14,563)(353,330)
 852,228 190,815 227,377 98,421 39,121 76,788 1,484,750 
Acquisitions16,342 — — 19,908 6,705 162,048 205,003 
Impairment— — (26,686)— — — (26,686)
Foreign currency exchange rate changes
(13,485)— — — — — (13,485)
As of December 31, 2021
Goodwill1,186,236 190,815 234,993 118,329 45,826 253,399 2,029,598 
Accumulated impairment losses
(331,151)— (34,302)— — (14,563)(380,016)
 $855,085 $190,815 $200,691 $118,329 $45,826 $238,836 $1,649,582 
The changes in carrying amount of goodwill at the Company’s education division were as follows:
(in thousands)Kaplan
International		Higher
Education		Supplemental EducationTotal
As of December 31, 2019   
Goodwill$595,604 $174,564 $370,790 $1,140,958 
Accumulated impairment losses
— (111,324)(219,827)(331,151)
 595,604 63,240 150,963 809,807 
Measurement period adjustment154 — — 154 
Acquisitions9,788 — 3,234 13,022 
Foreign currency exchange rate changes
29,203 — 42 29,245 
As of December 31, 2020
Goodwill634,749 174,564 374,066 1,183,379 
Accumulated impairment losses
— (111,324)(219,827)(331,151)
 634,749 63,240 154,239 852,228 
Acquisitions— — 16,342 16,342 
Foreign currency exchange rate changes
(13,481)— (4)(13,485)
As of December 31, 2021  
Goodwill621,268 174,564 390,404 1,186,236 
Accumulated impairment losses
— (111,324)(219,827)(331,151)
 $621,268 $63,240 $170,577 $855,085 
Other intangible assets consist of the following:
  As of December 31, 2021As of December 31, 2020
(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
$300,027 $206,714 $93,313 $294,077 $178,075 $116,002 
Trade names and trademarks
2–15 years (1)
158,365 68,113 90,252 109,809 54,766 55,043 
Network affiliation agreements
10 years
17,400 8,628 8,772 17,400 6,888 10,512 
Databases and technology
3–6 years
36,585 26,464 10,121 34,864 19,924 14,940 
Noncompete agreements
2–5 years
1,000 991 9 1,000 937 63 
Other
1–8 years
68,500 23,847 44,653 24,800 16,714 8,086 
  $581,877 $334,757 $247,120 $481,950 $277,304 $204,646 
Indefinite-Lived Intangible Assets
      
Trade names and trademarks $86,972   $87,429 
Franchise agreements 44,058   21,858 
FCC licenses11,000 11,000 
Licensure and accreditation 150   150   
  $142,180   $120,437   
____________
(1)
As of December 31, 2020, the trade names and trademarks’ maximum useful life was 10 years.