Other Intangible Assets, net

9 Months Ended

Sep. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

6. Other Intangible Assets, net

The components of other intangible assets, net, at September 30, 2021 (unaudited) and December 31, 2020 were as follows:

			September 30, 2021							December 31, 2020
(millions)	Weighted Average Life (Years)		Intangible Assets, Gross		Accumulated Amortization			Intangible Assets, Net		Intangible Assets, Gross		Accumulated Amortization			Intangible Assets, Net
Covenant not to compete		1.8	$	2.9	$	(2.1	)	$	0.8	$	2.9	$	(1.3	)	$	1.6
Trade names and trademarks		2.2		0.9		(0.4	)		0.5		0.9		(0.2	)		0.7
Proprietary know how		2.9		3.8		(1.1	)		2.7		3.8		(0.4	)		3.4
Management contract rights		7.4		81.0		(46.4	)		34.6		81.0		(42.6	)		38.4
Customer relationships		12.2		21.5		(3.5	)		18.0		21.5		(2.5	)		19.0
Other intangible assets, net		8.6	$	110.1	$	(53.5	)	$	56.6	$	110.1	$	(47.0	)	$	63.1

Amortization expense related to intangible assets for the three and nine months ended September 30, 2021 and 2020, (unaudited), respectively, which was included in Depreciation and amortization within the Condensed Consolidated Statements of Income (Loss), was as follows:

	Three Months Ended				Nine Months Ended
(millions)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Amortization expense	$	2.2	$	3.3	$	6.5	$	11.1

As discussed in Note 1. Significant Accounting Policies and Practices, due to the impact of COVID-19 on the Company’s expected future operating cash flows, the Company determined certain impairment testing triggers had occurred for Proprietary know how intangible assets as of June 30, 2020. Accordingly, the Company analyzed undiscounted cash flows for these intangible assets as of June 30, 2020 and determined the carrying value for the Proprietary know how intangible assets was higher than their projected undiscounted cash flows. As a result, the Company recorded $3.7 million of impairment charges within the Aviation segment during the nine months ended September 30, 2020, which was recognized in Impairment of goodwill and intangible assets in the Condensed Consolidated Statements of Income (Loss).

Additionally, due to the termination of certain contracts within the Aviation segment during August 2020 and the impact of COVID-19 on the Company’s expected future operating cash flows, the Company analyzed undiscounted cash flows for customer relationships and trade names and trademarks as of August 31, 2020 and determined the carrying values for certain customer relationships and trade names and trademarks were higher than their projected undiscounted cash flows. As a result, the Company recorded $72.1 million of impairment charges within the Aviation segment during the three and nine months ended September 30, 2020, which were recognized in Impairment of goodwill and intangible assets in the Condensed Consolidated Statements of Income (Loss).

No impairment charges were recorded during the three and nine months ended September 30, 2021.

The fair values of the intangible assets were classified as Level 3 in the fair value hierarchy. Additional information on the impairment analysis and the impairment charge recognized during the three and nine months ended September 30, 2020 is provided below:

	Three Months Ended		Nine Months Ended
(millions) (unaudited)	September 30, 2020		September 30, 2020
Customer relationships ⁽¹⁾	$	69.2	$	69.2
Trade names and trademarks⁽¹⁾		2.9		2.9
Proprietary know how ⁽²⁾		—		3.7
Total impairment of intangible assets	$	72.1	$	75.8

(1)

In connection with the analysis performed on August 31, 2020, customer relationships were valued using the multi-period earnings method and determined to have a carrying value of $73.8 million and a fair value of $4.6 million, while trade names and trademarks were valued using the royalty savings approach and determined to have a carrying value of $ 3.4 million and a fair value of $0.5 million, respectively.

(2)	In connection with the analysis performed on June 30, 2020, Proprietary know how were valued using the multi-period excess earnings method and determined to have a carrying value of $7.6 million and a fair value of $3.9 million, respectively.