Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets, Net

v3.20.4
Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill, Net
The changes in the goodwill balances by reportable segment are as follows:
U.S. Regions U.S. Federal Canada Other Total
Carrying Value of Goodwill
Balance, December 31, 2018 $ 26,370  $ 4,609  $ 3,217  $ 24,136  $ 58,332 
Goodwill acquired during the year 337  —  —  —  337 
Remeasurement adjustments (2) (628) —  —  (630)
Foreign currency translation —  —  152  223  375 
Balance, December 31, 2019 26,705  3,981  3,369  24,359  58,414 
Foreign currency translation —  —  72  228  300 
Balance, December 31, 2020 $ 26,705  $ 3,981  $ 3,441  $ 24,587  $ 58,714 
Accumulated Goodwill Impairment
Balance, December 31, 2019 $ —  $ —  $ (1,016) $ —  $ (1,016)
Balance, December 31, 2020 $ —  $ —  $ (1,016) $ —  $ (1,016)
Our annual goodwill impairment review was performed each year-end using a quantitative approach, and we determined that there was no goodwill impairment for the years ended December 31, 2020 and 2019. We tested goodwill for impairment at the reporting unit level utilizing the income approach which included a discounted cash flow method and peer-based guideline method, and a risk-adjusted weighted average cost of capital. Based on our assessment, all our reporting units with goodwill had estimated fair values that exceeded their carrying values by at least 67% as of December 31, 2020 and 15% as of December 31, 2019. During the course of our valuation analysis we determined that although the fair value of our U.S. Federal reporting unit exceeded the carrying amount of this reporting unit, the carrying value of the reporting unit was negative.
Intangible Assets, Net
Definite-lived intangible assets, net consisted of the following:
As of December 31,
2020 2019
Gross carrying amount
Customer contracts $ 7,977  $ 7,904 
Customer relationships 12,914  12,749 
Non-compete agreements 3,061  3,037 
Technology 2,743  2,732 
Tradenames 545  544 
Total gross carrying amount 27,240  26,966 
Accumulated Amortization
Customer contracts 7,977  7,844 
Customer relationships 12,006  11,236 
Non-compete agreements 3,061  3,037 
Technology 2,734  2,704 
Tradenames 535  531 
Total accumulated amortization 26,313  25,352 
Intangible assets, net $ 927  $ 1,614 
Customer contracts are amortized ratably over the period of the acquired customer contracts ranging in periods from approximately one to eight years. All other intangible assets are amortized over periods ranging from approximately four to fifteen years, as defined by the nature of the respective intangible asset.
Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. We annually assess whether a change in the useful life is necessary, or more frequently if events or circumstances warrant. No changes to useful lives were made during the years ended December 31, 2020, 2019 and 2018.
The table below sets forth amortization expense:
Year Ended December 31,
Location 2020 2019 2018
Customer contracts Cost of revenues $ 59  $ 90  $ 30 
Customer relationships Selling, general and administrative expenses 604  806  973 
Non-compete agreements Selling, general and administrative expenses —  1  3 
Technology Selling, general and administrative expenses 19  12  47 
Tradenames Selling, general and administrative expenses 3  —  4 
Total amortization expense $ 685  $ 909  $ 1,057 
Amortization expense for our definite-lived intangible assets for the next five years to be included in selling, general and administrative expenses is as follows:
Estimated Amortization Expense
2021 $ 306 
2022 139 
2023 129 
2024 127 
2025 127 
Thereafter 99 
Total $ 927