0001620280-22-000010 | 10-Q | XBRL Viewer | Uniti Group INC

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Goodwill and Intangible Assets and Liabilities

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets And Liabilities Disclosure [Abstract]

Goodwill and Intangible Assets and Liabilities

Goodwill and Intangible Assets and Liabilities

There were no changes in the carrying amount of goodwill during the three and six months ended June 30, 2022. The balance of goodwill recorded in our Fiber Infrastructure segment as of June 30, 2022 and December 31, 2021 is as follows:


(Thousands)						Fiber Infrastructure						Total
Goodwill at December 31, 2021						$	601,878					$	601,878
Goodwill at June 30, 2022						$	601,878					$	601,878


(Thousands)						June 30, 2022												December 31, 2021
						Original Cost						Accumulated Amortization						Original Cost						Accumulated Amortization
Finite life intangible assets:
Customer lists						$	416,104					$	(117,296)					$	416,104					$	(105,861)
Contracts						52,536						(11,492)						52,536						(8,209)
Underlying Rights						10,497						(612)						10,497						(437)

Total intangible assets						$	479,137											$	479,137
Less: accumulated amortization						(129,400)												(114,507)
Total intangible assets, net						$	349,737											$	364,630

Finite life intangible liabilities:
Below-market leases						$	191,154					(18,715)						$	191,154					(13,368)

Finite life intangible liabilities:
Below-market leases						$	191,154											$	191,154
Less: accumulated amortization						(18,715)												(13,368)
Total intangible liabilities, net						$	172,439											$	177,786

As of June 30, 2022, the remaining weighted average amortization period of the Company’s intangible assets was 14.6 years.

Amortization expense for the three and six months ended June 30, 2022 was $7.4 million and $14.8 million, respectively. Amortization expense for the three and six months ended June 30, 2021 was $4.7 million and $9.5 million, respectively. Amortization expense is estimated to be $29.8 million for the full year of 2022, $29.8 million in 2023, $29.7 million in 2024, $29.7 million in 2025, and $29.7 million for 2026.

We recognize the amortization of below-market leases in revenue. Revenue related to the amortization of the below-market leases for the three and six months ended June 30, 2022 was $2.6 million and $5.3 million. During the three and six months ended June 30, 2021, $2.6 million and $5.3 million was recorded as a benefit to amortization expense, and subsequently reclassified these amounts to revenue during the fourth quarter of 2021. As of June 30, 2022, the remaining weighted average amortization period of the Company’s intangible liabilities was 17.4 years. Revenue due to the amortization of the below-market leases is estimated to be $10.7 million for the full year of 2022, $10.7 million in 2023, $10.7 million in 2024, $10.7 million in 2025, and $10.7 million in 2026.