Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangibles

v3.20.2
Goodwill and Other Intangibles
9 Months Ended
Sep. 30, 2020
Goodwill and Other Intangibles  
Goodwill and Other Intangibles

4.  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.

In the fourth quarter of 2019, we performed an annual assessment on our goodwill resulting in no impairment.

Changes in the carrying amount of goodwill for the nine months ended September 30, 2020 by segment, were as follows, in thousands:

    

Gross Goodwill

    

    

Gross Goodwill

    

   Accumulated   

    

Net Goodwill

at

at

Impairment

at

December 31, 2019

Additions

September 30, 2020

Losses

September 30, 2020

Goodwill, by segment:

Installation

$

1,683,589

$

11,803

$

1,695,392

$

(762,021)

$

933,371

Distribution

 

446,350

 

 

446,350

 

 

446,350

Total goodwill

$

2,129,939

$

11,803

$

2,141,742

$

(762,021)

$

1,379,721

See Note 13 – Business Combinations for goodwill recognized on acquisitions that occurred in the first half of 2020.

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

    

    

    

    

    

    

    

September 30, 

December 31, 

2020

2019

Gross definite-lived intangible assets

    

$

228,662

$

221,382

Accumulated amortization

    

(56,272)

(40,260)

Net definite-lived intangible assets

    

172,390

181,122

Indefinite-lived intangible assets not subject to amortization

    

Other intangible assets, net

    

$

172,390

$

181,122

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

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2020

    

2019

    

2020

    

2019

Amortization expense

$

5,382

$

5,197

$

16,012

$

15,543