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GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended
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Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The change in carrying amount of goodwill is as follows (in thousands):
| NAST |  | Global Forwarding |  | All Other and Corporate |  | Total
Balance, December 31, 2023 | $ | 1,188,813 |  |  | $ | 207,599 |  |  | $ | 77,188 |  |  | $ | 1,473,600 |
Foreign currency translation | (2,486) |  |  | (1,830) |  |  | (679) |  |  | (4,995) |
Balance, June 30, 2024 | $ | 1,186,327 |  |  | $ | 205,769 |  |  | $ | 76,509 |  |  | $ | 1,468,605 |
Goodwill is tested at least annually for impairment on November 30, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting units is less than their respective carrying value (“Step Zero Analysis”). If the Step Zero Analysis indicates it is more likely than not that the fair value of our reporting units is less than their respective carrying value, an additional impairment assessment is performed (“Step One Analysis”). As part of our 2023 annual impairment test, we determined that the fair value of our reporting units exceeded their respective carrying values and our goodwill balance was not impaired. In the second quarter of 2024, we identified qualitative and quantitative factors indicating that the fair value of our Europe Surface Transportation reporting unit may not exceed its carrying value requiring an interim Step One Analysis. As a result of our interim Step One Analysis, we determined that the fair value of our Europe Surface Transportation reporting unit exceeded its carrying value by less than 5 percent and its $29.2 million goodwill balance was not impaired. Our interim Step One Analysis was completed using a combination of the market approach and a discounted cash flow analysis. The market approach was completed to determine the fair value of the Europe Surface Transportation business, excluding its proprietary technology platform, and was based upon available third-party offers to acquire the business at the measurement date. As the offers to acquire the business did not include the sale of a technology platform necessary to run the business, a discounted cash flow analysis was completed to determine the fair value of the Europe Surface Transportation proprietary technology platform. The computed fair value of the reporting unit exceeded its carrying value by less than 5 percent and therefore the judgments, key assumptions, and third-party offers to acquire the business are inherently sensitive inputs to our interim Step One Analysis. A negative change to the Europe Surface Transportation market could have negatively impacted the third-party offers to acquire the business used in our interim Step One Analysis although as noted in Note 14, Subsequent Events, the Company has entered into an agreement to sell the business excluding its proprietary technology platform. A change to the timing or cash outflows needed for a market participant to implement a comparable technology platform and changes to our computed discount rate are the primary factors that could reasonably be expected to negatively affect the fair value determined by our discounted cash flow analysis. We will continue to monitor any changes to the assumptions included in our discounted cash flow analysis in future periods as needed. There were no changes in circumstances or events identified in the second quarter of 2024 indicating that an interim impairment analysis was required for any other reporting units as of June 30, 2024. Identifiable intangible assets consisted of the following (in thousands):
| June 30, 2024 |  | December 31, 2023
| Cost |  | Accumulated Amortization |  | Net |  | Cost |  | Accumulated Amortization |  | Net
Finite-lived intangibles |  |  |  |  |  |  |  |  |  |  |
Customer relationships | $ | 92,366 |  |  | $ | (64,203) |  |  | $ | 28,163 |  |  | $ | 93,499 |  |  | $ | (58,437) |  |  | $ | 35,062 |
Indefinite-lived intangibles |  |  |  |  |  |  |  |  |  |  |
Trademarks | 8,600 |  |  | — |  |  | 8,600 |  |  | 8,600 |  |  | — |  |  | 8,600 |
Total intangibles | $ | 100,966 |  |  | $ | (64,203) |  |  | $ | 36,763 |  |  | $ | 102,099 |  |  | $ | (58,437) |  |  | $ | 43,662 |
Amortization expense for other intangible assets is as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Amortization expense | $ | 3,303 |  |  | $ | 5,773 |  |  | $ | 6,616 |  |  | $ | 11,588 |
Finite-lived intangible assets, by reportable segment, as of June 30, 2024, will be amortized over their remaining lives as follows (in thousands):
| NAST |  | Global Forwarding |  | All Other and Corporate |  | Total
Remainder of 2024 | $ | 3,966 |  |  | $ | 1,473 |  |  | $ | 538 |  |  | $ | 5,977 |
2025 | 7,857 |  |  | 2,279 |  |  | 1,076 |  |  | 11,212 |
2026 | 7,857 |  |  | 372 |  |  | 736 |  |  | 8,965 |
2027 | 1,310 |  |  | — |  |  | 493 |  |  | 1,803 |
2028 | — |  |  | — |  |  | 206 |  |  | 206 |
Total |  |  |  |  |  |  | $ | 28,163 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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