GOODWILL AND INTANGIBLE ASSETS |
GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021 by segment are as follows:
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(thousands) |
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Manufacturing |
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Distribution |
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Total |
Balance - January 1, 2021 |
|
$ |
338,045 |
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|
$ |
57,755 |
|
|
$ |
395,800 |
|
Acquisitions |
|
136,195 |
|
|
11,697 |
|
|
147,892 |
|
Adjustment to prior year preliminary purchase price allocation |
|
7,666 |
|
|
19 |
|
|
7,685 |
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Balance - December 31, 2021 |
|
481,906 |
|
|
69,471 |
|
|
551,377 |
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Acquisitions |
|
82,886
|
|
|
240
|
|
|
83,126
|
|
Adjustment to prior year preliminary purchase price allocation |
|
(6,430) |
|
|
1,190
|
|
|
(5,240) |
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Balance - December 31, 2022 |
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$ |
558,362
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|
|
$ |
70,901
|
|
|
$ |
629,263
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As of December 31, 2022 and 2021, accumulated impairment of goodwill in the Manufacturing segment was $27.4 million.
Intangible assets, net consist of the following at December 31, 2022 and 2021:
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(thousands) |
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2022 |
|
2021 |
Customer relationships |
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$ |
722,503
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$ |
617,814 |
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Non-compete agreements |
|
20,412
|
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|
21,284 |
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Patents |
|
69,164
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|
50,038 |
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Trademarks |
|
195,957
|
|
|
165,897 |
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|
|
1,008,036
|
|
|
855,033 |
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Less: accumulated amortization |
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(287,806) |
|
|
(214,577) |
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Intangible assets, net |
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$ |
720,230
|
|
|
$ |
640,456 |
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Changes in the carrying value of intangible assets for the years ended December 31, 2022 and 2021 by segment are as follows:
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|
|
|
|
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(thousands) |
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Manufacturing |
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Distribution |
|
Total |
Balance - January 1, 2021 |
|
$ |
373,717 |
|
|
$ |
82,559 |
|
|
$ |
456,276 |
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Acquisitions |
|
212,883 |
|
|
32,715 |
|
|
245,598 |
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Amortization |
|
(46,684) |
|
|
(9,645) |
|
|
(56,329) |
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Adjustment to prior year preliminary purchase price allocation |
|
(5,089) |
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|
— |
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|
(5,089) |
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Balance - December 31, 2021 |
|
534,827 |
|
|
105,629 |
|
|
640,456 |
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Acquisitions |
|
145,204
|
|
|
260
|
|
|
145,464
|
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Amortization |
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(62,786) |
|
|
(10,443) |
|
|
(73,229) |
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Adjustment to prior year preliminary purchase price allocation |
|
5,402
|
|
|
2,137
|
|
|
7,539
|
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Balance - December 31, 2022 |
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$ |
622,647
|
|
|
$ |
97,583
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|
|
$ |
720,230
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Amortization expense for the next five fiscal years ending December 31 related to finite-lived intangible assets as of December 31, 2022 is estimated to be as follows (in thousands):
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2023 |
$ |
77,584 |
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2024 |
76,225 |
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2025 |
72,467 |
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2026 |
66,774 |
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2027 |
60,296 |
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