Goodwill and Other Intangibles
|3 Months Ended|
Mar. 31, 2019
|Goodwill and Other Intangibles|
|Goodwill and Other Intangibles||
3. GOODWILL AND OTHER INTANGIBLES
We have two reporting units which are also our operating and reporting segments: Installation and 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 and determination of the fair value of such unit. 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.
The estimated fair values of the two reporting units substantially exceeded their respective carrying values based on the most recent annual impairment test which occurred in the fourth quarter of 2018.
Changes in the carrying amount of goodwill for the three months ended March 31, 2019, by segment, were as follows, in thousands:
During the first quarter of 2019, we recorded measurement-period adjustments related to the acquisition of USI, which decreased goodwill by approximately $0.7 million, primarily to record state income tax carryforward items.
Other intangible assets, net includes customer relationships, non-compete agreements, and trademarks / tradenames. The following table sets forth our other intangible assets, in thousands:
Amortization expense was $5.2 million and $1.3 million for the three months ended March 31, 2019 and 2018, respectively.
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef