Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangibles

v3.20.4
Goodwill and Other Intangibles
12 Months Ended
Dec. 31, 2020
Goodwill and Other Intangibles  
Goodwill and Other Intangibles

5.  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 such unit and determination of its fair value.  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 quarters of 2020 and 2019, we performed annual assessments on our goodwill resulting in no impairment.

Changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019, by segment, were as follows, in thousands:

    

    

    

    

   Accumulated   

    

Gross Goodwill

Gross Goodwill

Impairment

Net Goodwill

December 31, 2019

Additions

December 31, 2020

Losses

December 31, 2020

Goodwill, by segment:

Installation

$

1,683,589

$

42,767

$

1,726,356

$

(762,021)

$

964,335

Distribution

 

446,350

 

 

446,350

 

 

446,350

Total goodwill

$

2,129,939

$

42,767

$

2,172,706

$

(762,021)

$

1,410,685

    

    

    

    

   Accumulated   

    

Gross Goodwill

Gross Goodwill

Impairment

Net Goodwill

December 31, 2018

Additions

December 31, 2019

Losses

December 31, 2019

Goodwill, by segment:

Installation

$

1,679,654

$

3,935

$

1,683,589

$

(762,021)

$

921,568

Distribution

 

446,383

 

(33)

 

446,350

 

 

446,350

Total goodwill

$

2,126,037

$

3,902

$

2,129,939

$

(762,021)

$

1,367,918

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 December 31,

2020

2019

2018

Gross definite-lived intangible assets

    

$

252,751

$

221,382

$

218,882

Accumulated amortization

    

(62,146)

(40,260)

(19,495)

Net definite-lived intangible assets

    

190,605

181,122

199,387

Indefinite-lived intangible assets not subject to amortization

    

Other intangible assets, net

    

$

190,605

$

181,122

$

199,387

    

    

Amortization expense

    

$

21,886

    

$

20,765

    

$

15,752

The following table sets forth the amortization expense related to the definite-lived intangible assets during each of the next five years, in thousands:

    

Amortization
Expense

2021

$

23,445

2022

22,629

2023

21,800

2024

21,692

2025

21,692

See Note 16 – Business Combinations for breakout by major intangible asset class and their weighted average estimated useful lives.