Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangibles

v3.23.3
Goodwill and Other Intangibles
9 Months Ended
Sep. 30, 2023
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 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 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 2022, we performed an annual assessment on our goodwill resulting in no impairment and there were no indicators of impairment for the nine months ended September 30, 2023.

Changes in the carrying amount of goodwill for the nine months ended September 30, 2023, by segment, were as follows, in thousands:

    

    

    

    

   Accumulated   

    

Gross Goodwill

FX Translation

Gross Goodwill

Impairment

Net Goodwill

December 31, 2022

Additions/Disposals

Adjustment

September 30, 2023

Losses

September 30, 2023

Goodwill, by segment:

Installation

$

1,826,979

$

72,998

$

-

$

1,899,977

$

(762,021)

$

1,137,956

Specialty Distribution

 

902,036

 

-

(215)

 

901,821

 

-

 

901,821

Total goodwill

$

2,729,015

$

72,998

$

(215)

$

2,801,798

$

(762,021)

$

2,039,777

See Note 11 – Business Combinations for goodwill recognized on acquisitions that occurred during the nine months ended September 30, 2023.

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, 2023

December 31, 2022

Gross definite-lived intangible assets

    

$

825,552

$

782,316

Accumulated amortization

    

(218,612)

(167,349)

Net definite-lived intangible assets

    

$

606,940

$

614,967

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

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2023

    

2022

    

2023

    

2022

Amortization expense

$

17,389

$

16,970

$

51,496

$

50,809