Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.19.1
Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying value of goodwill attributable to each reportable segment are as follows:
 
U.S. Regions
 
U.S. Federal
 
Canada
 
Other
 
Total
Balance, December 31, 2018
$
26,370

 
$
4,609

 
$
3,217

 
$
24,136

 
$
58,332

Goodwill acquired during the year
406

 
—

 
—

 
—

 
406

Re-measurement adjustment
—

 
(113
)
 
—

 
—

 
(113
)
Currency effects
—

 
—

 
68

 
142

 
210

Balance, March 31, 2019
$
26,776

 
$
4,496

 
$
3,285

 
$
24,278

 
$
58,835

Accumulated Goodwill Impairment Balance, December 31, 2018
$
—

 
$
—

 
$
(1,016
)
 
$
—

 
$
(1,016
)
Accumulated Goodwill Impairment Balance, March 31, 2019
$
—

 
$
—

 
$
(1,016
)
 
$
—

 
$
(1,016
)

The Company completed one acquisition during the three months ended March 31, 2019, which resulted in a $406 increase in goodwill as disclosed in Note 4.
Since the Company’s annual goodwill impairment test there have been no events that would have triggered a need for an interim impairment test.
Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. The Company annually assesses whether a change in the life over which the Company’s assets are amortized is necessary, or more frequently if events or circumstances warrant.
Acquired intangible assets other than goodwill that are subject to amortization include customer contracts, customer relationships, non-compete agreements, technology and trade names. Customer contracts are amortized ratably over the period of the acquired customer contracts ranging in periods from approximately one to five years. All other acquired intangible assets are amortized over periods ranging from approximately four to fifteen years, as determined by the nature of the respective intangible asset. As discussed in Note 4, the Company completed an acquisition in January 2019 which resulted in a $500 increase in customer relationships, which will be amortized over an 8 year period.
The gross carrying amount and accumulated amortization of intangible assets are as follows:
 
As of March 31,
 
As of December 31,
 
2019
 
2018
Gross Carrying Amount
 
 
 
Customer contracts
$
7,868

 
$
7,818

Customer relationships
12,686

 
12,082

Non-compete agreements
3,028

 
3,013

Technology
2,720

 
2,710

Trade names
542

 
541

 
26,844

 
26,164

Accumulated Amortization
 
 
 
Customer contracts
7,740

 
7,668

Customer relationships
10,571

 
10,302

Non-compete agreements
3,028

 
3,013

Technology
2,668

 
2,651

Trade names
527

 
526

 
24,534

 
24,160

Intangible assets, net
$
2,310

 
$
2,004


Amortization expense related to customer contracts is included in cost of revenues in the condensed consolidated statements of income. Amortization expense related to all other acquired intangible assets is included in selling, general and administrative expenses in the condensed consolidated statements of income. Amortization expense for the three months ended March 31, 2019 and 2018 related to customer contracts was $23 and $0, respectively. Amortization expense for the three months ended March 31, 2019 and 2018 related to all other acquired intangible assets and was $190 and $253, respectively.