XML 62 R16.htm IDEA: XBRL DOCUMENT v3.20.1
Intangible Assets, Net and Goodwill (Notes)
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net and Goodwill
Intangible Assets, Net and Goodwill
The Company recognizes certain separately identifiable intangible assets acquired in connection with business combinations and asset acquisitions. The Company had two transactions that were accounted for as asset acquisitions during the year ended December 31, 2019 in which substantially all the fair value of the gross assets acquired of $695,000 was concentrated in purchased customer accounts. Refer to Note 4 for a summary of intangible assets acquired in connection with business combinations during the year ended December 31, 2019. Intangible assets consist of the following:
 
 
December 31, 2019
 
December 31, 2018
(in thousands)
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Value
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Value
Purchased customer accounts
 
66,987

 
$
(9,474
)
 
$
57,513

 
$
33,292

 
$
(4,372
)
 
$
28,920

Software
 
30,590

 
(5,070
)
 
25,520

 
570

 
(495
)
 
75

Carrier relationships
 
7,200

 
(170
)
 
7,030

 

 

 

Trade names
 
2,613

 
(226
)
 
2,387

 
792

 
(43
)
 
749

Totals
 
$
107,390

 
$
(14,940
)
 
$
92,450

 
$
34,654

 
$
(4,910
)
 
$
29,744


Amortization expense recorded for intangible assets was $10.0 million and $2.6 million for the years ended December 31, 2019 and 2018, respectively.
Future annual estimated amortization expense over the next five years for intangible assets is as follows (in thousands):
For the Years Ending December 31,
 
Amortization
2020
 
$
12,018

2021
 
12,219

2022
 
12,473

2023
 
12,283

2024
 
7,143


Refer to Note 4 for a summary of goodwill recorded in connection with business combinations during the year ended December 31, 2019. The changes in carrying value of goodwill by reportable segment for the period are as follows:
(in thousands)
 
 Middle Market
 
 Specialty
 
 MainStreet
 
 Medicare
 
 Total
Balance at December 31, 2017
 
$
1,001

 
$

 
$
13,923

 
$
12,531

 
$
27,455

Goodwill of acquired businesses
 
24,860

 
9,951

 
3,498

 

 
38,309

Balance at December 31, 2018
 
25,861

 
9,951

 
17,421

 
12,531

 
65,764

Goodwill of acquired businesses
 
27,071

 
50,164

 
21,471

 

 
98,706

Balance at December 31, 2019
 
$
52,932

 
$
60,115

 
$
38,892

 
$
12,531

 
$
164,470