Goodwill and Intangible Assets

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

7. GOODWILL AND INTANGIBLE ASSETS

Amounts related to goodwill as of September 30, 2020 and December 31, 2019 are as follows:


	Assessment, Permitting and Response		Measurement and Analysis		Remediation and Reuse		Total
Balance as of December 31, 2019	$	15,173	$	68,628	$	43,257	$	127,058
Goodwill acquired during the period		146,625		426		200		147,251

Balance as of September 30, 2020	$	161,798	$	69,054	$	43,457	$	274,309

Amounts related to finite-lived intangible assets as of September 30, 2020 and December 31, 2019 are as follows:


September 30, 2020	Estimated Useful Life		Gross Balance		Accumulated Amortization		Total Intangible Assets—Net
Finite lived intangible assets
Customer relationships		7–15 years	$	164,782	$	49,068	$	115,714
Covenants not to compete		4–5 years		29,942		20,444		9,498
Trade names		1–5 years		16,938		12,196		4,742
Proprietary software		3-5 years		20,808		4,915		15,893
Patent		16 years		17,479		1,125		16,354

Total other intangible assets—net			$	249,949	$	87,748	$	162,201


December 31, 2019	Estimated Useful Life		Gross Balance		Accumulated Amortization		Total Intangible Assets—Net
Finite lived intangible assets
Customer relationships		7–10 years	$	108,782	$	36,700	$	72,082
Covenants not to compete		4–5 years		25,832		17,572		8,260
Trade names		1–5 years		12,738		10,230		2,508
Proprietary software		3 years		3,885		1,359		2,526
Patent		16 years		17,479		306		17,173

Total other intangible assets—net			$	168,716	$	66,167	$	102,549

Intangible assets with finite lives are stated at cost, less accumulated amortization and impairment losses, if any. These intangible assets are amortized using the straight-line method over the estimated useful lives of the assets.

Amortization expense was $7.6 million and $21.0 million for the three and nine months ended September 30, 2020, respectively and $5.3 million and $14.4 million for the three and nine months ended September 30, 2019, respectively.

Future amortization expense is estimated to be as follows for each of the five following years and thereafter:


December 31,
2020 (remaining)	$	7,543
2021		28,140
2022		24,053
2023		20,073
2024		16,951
Thereafter		65,441

	$	162,201

8. GOODWILL AND INTANGIBLE ASSETS

Amounts related to goodwill as of December 31, 2019 and 2018 are as follows:


	Assessment, Permitting and Response		Measurements and Analysis		Remediation and Reuse		Total
Balance as of January 1, 2018	$	—	$	44,123	$	21,695	$	65,818
Goodwill acquired during the year		15,173		4,340		5,167		24,680

Balance as of December 31, 2018		15,173		48,463		26,862		90,498
Goodwill acquired during the year				20,165		16,395		36,560

Balance as of December 31, 2019	$	15,173	$	68,628	$	43,257	$	127,058

Goodwill balances as of December 31, 2019 include $0.06 million of foreign currency translation adjustment related to TES and LEHDER acquisitions (Note 7). There was no translation adjustment as of December 31, 2018.

Amounts related to finite-lived intangible assets as of December 31, 2019 and 2018 are as follows:


2019	Estimated Useful Life		Gross Balance		Accumulated Amortization		Total Intangible Assets—Net
Finite lived intangible assets
Customer relationships		7–10 years	$	108,782	$	36,700	$	72,082
Covenants not to compete		4–5 years		25,832		17,572		8,260
Trade names		1–5 years		12,738		10,230		2,508
Proprietary software		3 years		3,885		1,359		2,526
Patent		16 years		17,479		306		17,173

Total other intangible assets—net			$	168,716	$	66,167	$	102,549


2018	Estimated Useful Life		Gross Balance		Accumulated Amortization		Total Intangible Assets—Net
Finite lived intangible assets
Customer relationships		7–10 years	$	82,176	$	23,932	$	58,244
Covenants not to compete		4–5 years		20,390		13,785		6,605
Trade names		1–5 years		11,072		8,282		2,790
Proprietary software		3 years		1,303		379		924

Total other intangible assets—net			$	114,941	$	46,378	$	68,563

During 2018, Company capitalized certain costs incurred to develop extranet software for internal and client use. The capitalized costs included payments to vendors and consultants for the development and implementation or modification of internal use software. During 2019, the Company acquired a custom software platform as part of the TES acquisition (Note 7) to service upstream and midstream oil and gas producers and assist with their LDAR requirements related to government regulations of fugitive and greenhouse gas emissions. These assets are considered proprietary software.

During 2019, as part of ECT2 acquisition (Note 7), the Company acquired a patent for the removal of contaminants in water.

The Company evaluates intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of intangible assets is measured by a comparison of the carrying amount of the intangible asset to the future undiscounted operating cash flows expected to be generated by the asset. As of December 31, 2019 and 2018, there was no impairment of intangible assets subject to amortization.

Amortization expense for the years ended December 31, 2019 and 2018 was $20.0 million and $16.3 million, respectively.

Future amortization expense is estimated to be as follows for each of the five following years and thereafter ending December 31, 2019:


2020	$	21,473
2021		18,895
2022		14,810
2023		12,025
2024		9,357
Thereafter		25,989

	$	102,549