Quarterly report [Sections 13 or 15(d)]

Goodwill and Other Intangibles

v3.25.1
Goodwill and Other Intangibles
3 Months Ended
Mar. 31, 2025
Goodwill and Other Intangibles  
Goodwill and Other Intangibles

4.  GOODWILL AND OTHER INTANGIBLES

We have two reporting units which are also our operating and reportable segments: Installation and Specialty Distribution. Both reporting units contain goodwill. Assets acquired and liabilities assumed are assigned to the applicable reporting unit based on whether the acquired assets and liabilities relate to the operations of such unit and determination of its fair value. Goodwill assigned to the reporting unit is the excess of the fair value of the acquired business over the fair value of the individual assets acquired and liabilities assumed for the reporting unit.

In the fourth quarter of 2024, we performed an annual assessment on our goodwill resulting in no impairment and there were no indicators of impairment for the three months ended March 31, 2025.

Changes in the carrying amount of goodwill for the three months ended March 31, 2025, by segment, were as follows, in thousands:

    

    

    

    

   Accumulated   

    

Gross Goodwill

FX Translation

Gross Goodwill

Impairment

Net Goodwill

December 31, 2024

Additions

Adjustment

March 31, 2025

Losses

March 31, 2025

Goodwill, by segment:

Installation

$

1,946,247

$

(63)

$

-

$

1,946,184

$

(762,021)

$

1,184,163

Specialty Distribution

 

928,033

 

1,143

77

 

929,253

 

-

 

929,253

Total goodwill

$

2,874,280

$

1,080

$

77

$

2,875,437

$

(762,021)

$

2,113,416

Additions during the three months ended March 31, 2025, pertain to measurement period adjustments to the fair value of goodwill assigned to businesses acquired in the last twelve months.

Other intangible assets, net includes customer relationships, non-compete agreements, and trademarks / trade names. The following table sets forth our other intangible assets, in thousands:

As of

March 31, 2025

December 31, 2024

Gross definite-lived intangible assets

    

$

864,771

$

864,693

Accumulated amortization

    

(325,189)

(307,004)

Other intangible assets, net

$

539,582

$

557,689

The following table sets forth our amortization expense, in thousands:

Three Months Ended March 31, 

    

2025

    

2024

Amortization expense

$

18,156

$

17,686