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Goodwill and Other Intangible Assets, Net
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net
Goodwill and Other Intangible Assets, Net
The Company has recorded goodwill as a result of its various business combinations. On April 5, 2017, the Company completed its acquisition of CEC. Refer to Note 2 - 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 recognized during the years ended December 31, 2018 and 2017 were as follows (in thousands):
 
 
 
December 31, 2017
 
Acquisitions (net of dispositions)
 
Foreign
currency
translation
 
December 31, 2018
U.S. Corrections & Detention
 
$
317,005

 
$
(639
)
 
$

 
$
316,366

GEO Care
 
461,499

 
(1,910
)
 

 
459,589

International Services
 
447

 

 
(43
)
 
404

Total Goodwill
 
$
778,951

 
$
(2,549
)
 
$
(43
)
 
$
776,359



 
 
December 31, 2016
 
Acquisitions
Foreign
currency
translation
 
December 31, 2017
U.S. Corrections & Detention
 
$
277,774

 
$
39,231

$

 
$
317,005

GEO Care
 
337,257

 
124,242


 
461,499

International Services
 
402

 

45

 
447

Total Goodwill
 
$
615,433

 
$
163,473

$
45

 
$
778,951













Intangible assets consisted of the following as of December 31, 2018 and December 31, 2017 (in thousands):
 
 
 
December 31, 2018
 
December 31, 2017
 
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
$
308,419

 
$
(127,481
)
 
$
180,938

 
$
308,518

 
$
(106,724
)
 
$
201,794

Covenants not to compete
1
700

 
(700
)
 

 
700

 
(517
)
 
183

Technology
7.3
33,700

 
(27,478
)
 
6,222

 
33,700

 
(25,538
)
 
8,162

Trade names
Indefinite
45,200

 

 
45,200

 
45,200

 

 
45,200

Total acquired intangible assets
 
$
388,019

 
$
(155,659
)
 
$
232,360

 
$
388,118

 
$
(132,779
)
 
$
255,339


The accounting for recognized intangible assets is based on the useful lives to the reporting entity. Intangible assets with finite useful lives are amortized over their useful lives and intangible assets with indefinite useful lives are not amortized. The Company estimates the useful lives of its intangible assets taking into consideration (i) the expected use of the asset by the Company, (ii) the expected useful lives of other related assets or groups of assets, (iii) legal or contractual limitations, (iv) the Company's historical experience in renewing or extending similar arrangements, (v) the effects of obsolescence, demand, competition and other economic factors and (vi) the level of maintenance expenditures required to obtain the expected cash flows from the asset.
Amortization expense was $22.9 million, $24.7 million and $20.4 million for the years ended December 31, 2018, 2017 and 2016, respectively, and primarily related to the U.S. Corrections & Detention and GEO Care segments’ amortization of intangible assets for acquired management contracts. The Company relies on its historical experience in determining the useful life of facility management contracts. The Company makes assumptions related to acquired facility management contracts based on the competitive environment for individual contracts, our historical success rates in retaining contracts, the supply of available beds in the market, changes in legislation, the projected profitability of the facilities and other market conditions. As of December 31, 2018, the weighted average period before the next contract renewal or extension for the facility management contracts was approximately 1.5 years. Although the facility management contracts acquired have renewal and extension terms in the near term, the Company has historically maintained these relationships beyond the contractual periods.
Estimated amortization expense related to the Company’s finite-lived intangible assets for 2019 through 2023 and thereafter is as follows (in thousands):
Fiscal Year
Total  Amortization Expense

2019
$
22,287

2020
22,306

2021
19,782

2022
18,204

2023
13,494

Thereafter
91,087

 
 
 
$
187,160