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Note 10 - Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

10.

Goodwill and Other Intangible Assets

As discussed in Note 9, Acquisitions, in 2023, we recorded additional goodwill of approximately $12.4 million and additional finite-lived intangible assets of approximately $41.9 million in connection with the BNSFL acquisition. Total goodwill was $132.8 million and $120.4 million at September 30, 2023, and December 31, 2022, respectively. At September 30, 2023, $111.6 million, $12.4 million and $8.8 million of our goodwill was assigned to our Final Mile Services®, Integrated Capacity Solutions and Intermodal business segments, respectively. No impairment losses have been recorded for goodwill as of September 30, 2023. Prior to the BNSFL acquisition, our intangible assets consisted of those arising from previous business acquisitions within our Final Mile Services and Intermodal business segments. Identifiable intangible assets consist of the following (in millions):

							Weighted Average
	September 30,			December 31,			Amortization
	2023			2022			Period
Finite-lived intangibles:
Customer relationships	$	210.4		$	169.0			10.7
Non-competition agreements		10.1			9.6			6.1
Trade names		6.4			6.4			2.1
Total finite-lived intangibles		226.9			185.0
Less accumulated amortization		(83.7	)		(69.1	)
Total identifiable intangible assets, net	$	143.2		$	115.9

Our finite-lived intangible assets have no assigned residual values.

Intangible asset amortization expense was $4.9 million during the third quarter 2023, compared to $4.8 million during third quarter 2022. During the nine months ended September 30, 2023 and 2022, intangible asset amortization expense was $14.6 million and $13.4 million, respectively. Estimated amortization expense for our finite-lived intangible assets is expected to be approximately $20.5 million for 2023, $22.6 million for 2024, $22.3 million for 2025, $21.5 million for 2026, and $17.6 million for 2027. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, impairment or accelerated amortization of intangible assets, and other events.