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Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

2. GOODWILL AND OTHER INTANGIBLE ASSETS

The Company has recorded goodwill as a result of its various business combinations. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the tangible assets and intangible assets acquired net of liabilities assumed, including noncontrolling interests. Changes in the Company's goodwill balances from January 1, 2023 to September 30, 2023 are as follows (in thousands):

 

 

 

January 1,
2023

 

 

Foreign Currency
Translation

 

 

September 30, 2023

 

U.S. Secure Services

 

$

316,366

 

 

$

 

 

$

316,366

 

Electronic Monitoring and Supervision Services

 

 

289,570

 

 

 

 

 

 

289,570

 

Reentry Services

 

 

148,873

 

 

 

 

 

 

148,873

 

International Services

 

 

390

 

 

 

(21

)

 

 

369

 

Total Goodwill

 

$

755,199

 

 

$

(21

)

 

$

755,178

 

 

 

The Company has also recorded other finite and indefinite-lived intangible assets as a result of its various business combinations. The Company's intangible assets include facility management contracts and trade names and technology, as follows (in thousands):

 

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

Weighted
Average
Useful Life
(years)

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Facility management contracts

 

 

16.3

 

 

$

308,326

 

 

$

(215,255

)

 

$

93,071

 

 

$

308,350

 

 

$

(206,367

)

 

$

101,983

 

Technology

 

 

7.3

 

 

 

33,700

 

 

 

(33,700

)

 

 

 

 

 

33,700

 

 

 

(33,195

)

 

 

505

 

Trade names

 

Indefinite

 

 

 

45,200

 

 

 

 

 

 

45,200

 

 

 

45,200

 

 

 

 

 

 

45,200

 

Total acquired intangible assets

 

 

 

 

$

387,226

 

 

$

(248,955

)

 

$

138,271

 

 

$

387,250

 

 

$

(239,562

)

 

$

147,688

 

 

Amortization expense was $9.4 million and $14.8 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, the weighted average period before the next contract renewal or extension for the acquired facility management contracts was approximately 3.1 years.

Estimated amortization expense related to the Company's finite-lived intangible assets for the remainder of 2023 through 2027 and thereafter is as follows (in thousands):

 

Fiscal Year

 

Total
Amortization
Expense

 

Remainder of 2023

 

$

2,383

 

2024

 

 

9,305

 

2025

 

 

9,263

 

2026

 

 

7,170

 

2027

 

 

6,860

 

Thereafter

 

 

58,090

 

 

$

93,071