GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 by segment are as follows:


(thousands)	Manufacturing		Distribution		Total
Balance - January 1, 2020	$	268,402	$	50,947	$	319,349
Acquisitions	78,055		5,083		83,138
Adjustment to prior year preliminary purchase price allocation	(8,412)		1,725		(6,687)
Balance - December 31, 2020	338,045		57,755		395,800
Acquisitions	136,195		11,697		147,892
Adjustment to prior year preliminary purchase price allocation	7,666		19		7,685
Balance - December 31, 2021	$	481,906	$	69,471	$	551,377

As of December 31, 2021 and 2020, accumulated impairment of goodwill in the Manufacturing segment was $27.4 million.

Intangible assets, net consist of the following at December 31, 2021 and 2020:


(thousands)	2021		2020
Customer relationships	$	617,814	$	461,754
Non-compete agreements	21,284		15,949
Patents	50,038		23,025
Trademarks	165,897		113,796
	855,033		614,524
Less: accumulated amortization	(214,577)		(158,248)
Intangible assets, net	$	640,456	$	456,276

Changes in the carrying value of intangible assets for the years ended December 31, 2021 and 2020 by segment are as follows:


(thousands)	Manufacturing		Distribution		Total
Balance - January 1, 2020	$	282,123	$	74,891	$	357,014
Acquisitions	119,130		17,000		136,130
Amortization	(33,505)		(7,363)		(40,868)
Impairment of intangible assets (1)	(119)		(1,831)		(1,950)
Adjustment to prior year preliminary purchase price allocation	6,088		(138)		5,950
Balance - December 31, 2020	373,717		82,559		456,276
Acquisitions	212,883		32,715		245,598
Amortization	(46,684)		(9,645)		(56,329)
Adjustment to prior year preliminary purchase price allocation	(5,089)		—		(5,089)
Balance - December 31, 2021	$	534,827	$	105,629	$	640,456

(1) Certain operations permanently ceased activities during the year ended December 31, 2020. As a result, we recorded approximately $2.0 million in pre-tax impairment of customer relationships and trademarks of these operations after determining the net carrying value of the assets was no longer recoverable. The impairment was calculated using our internal projections of discounted cash flows, which rely on Level 3 inputs in the fair value hierarchy based on the unobservable nature of the underlying data. The impairment was recorded in selling, general and administrative in our consolidated statements of income for the year ended December 31, 2020.

Amortization expense for the next five fiscal years ending December 31 related to definite-lived intangible assets as of December 31, 2021 is estimated to be as follows (in thousands):


2022	$	66,457
2023	65,368
2024	64,097
2025	60,356
2026	54,542