Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Note 5—Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets of acquired businesses. Goodwill is not amortized, but is evaluated for impairment on an annual basis, or more frequently if impairment indicators arise. To date, the Company has not recognized an impairment of its goodwill.

Goodwill by reportable operating segment, as described in Note 15—Segment Information, was approximately $42.4 million and $8.7 million for Housekeeping and Dietary, respectively, as of December 31, 2019 and 2018.

Intangible Assets

The Company’s intangible assets consist of customer relationships which were obtained through acquisitions and are recorded at their fair values at the date of acquisition. Intangible assets with determinable lives are amortized on a straight-line basis over their estimated useful lives. The customer relationships have a weighted-average amortization period of 10.0 years. The gross amount of the Company's intangible assets as of December 31, 2019 and 2018 were $41.7 million and $43.7 million, respectively.

The following table sets forth the estimated amortization expense for intangibles subject to amortization for the next five years and thereafter:


Period/Year		Total Amortization Expense
	(in thousands)
2020		$	4,165
2021		$	4,165
2022		$	4,165
2023		$	3,168
2024		$	2,035
Thereafter		$	4,655

Amortization expense for the years ended December 31, 2019, 2018 and 2017 was $4.2 million, $4.4 million and $3.9 million, respectively.