GOODWILL (Notes)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Goodwill

The following table sets forth the changes in the carrying value of goodwill:


	Nine Months Ended
	September 30, 2021
	EES		CSS		UBS		Total
	(In thousands)
Beginning balance January 1(1)	$	853,456	$	1,115,500	$	1,218,213	$	3,187,169
Adjustments to goodwill for acquisitions (Note 4)(2)	1,124		8,602		4,215		13,941
Foreign currency exchange rate changes	1,679		(2,188)		1,087		578
Ending balance September 30	$	856,259	$	1,121,914	$	1,223,515	$	3,201,688

(1) The beginning balance excludes $26.1 million of goodwill that was classified as held for sale in the UBS segment as of December 31, 2020 and disposed in the first quarter of 2021 as part of the divestitures disclosed in Note 4, "Acquisitions and Disposals".

(2) Includes the effect on goodwill of the adjustments to the assets acquired and liabilities assumed in the merger with Anixter since their initial measurement, as described in Note 4, "Acquisitions and Disposals".

Intangible Assets

The components of intangible assets are as follows:


		September 30, 2021						December 31, 2020
	Life (in years)	Gross Carrying Amount (1)		Accumulated Amortization (1)		Net Carrying Amount		Gross Carrying Amount (1)		Accumulated Amortization (1)		Net Carrying Amount
Intangible assets:		(In thousands)
Trademarks	Indefinite	$	794,915	$	—	$	794,915	$	833,793	$	—	$	833,793
Customer relationships(2)	10 - 20	1,431,265		(287,565)		1,143,700		1,434,554		(227,585)		1,206,969
Distribution agreements(2)	10 - 19	29,212		(22,297)		6,915		29,212		(21,040)		8,172
Trademarks(2)	Less than 1 - 15	63,899		(32,964)		30,935		24,898		(11,415)		13,483
Non-compete agreements	2	4,292		(2,916)		1,376		4,462		(1,384)		3,078
		$	2,323,583	$	(345,742)	$	1,977,841	$	2,326,919	$	(261,424)	$	2,065,495

(1) Excludes the original cost and related accumulated amortization of fully-amortized intangible assets.

(2) The net carrying amount as of December 31, 2020 excluded $1.0 million of trademarks, $3.3 million of customer relationships and $1.4 million of distribution agreements that were classified as held for sale and disposed in the first quarter of 2021 as part of the divestitures disclosed in Note 4, "Acquisitions and Disposals".

Amortization expense related to intangible assets totaled $37.1 million and $27.3 million for the three months ended September 30, 2021 and 2020, respectively, and $85.8 million and $45.9 million for the nine months ended September 30, 2021 and 2020, respectively. For the three and nine months ended September 30, 2021, amortization expense includes $15.1 million and $20.2 million, respectively, resulting from the changes in estimated useful lives of certain legacy WESCO trademarks that are migrating to the Company's master brand architecture, as described in Note 2, "Accounting Policies".

The following table sets forth the remaining estimated amortization expense for intangible assets for the next five years and thereafter:


For year ending December 31,	(In thousands)
2021	$	33,814
2022	92,591
2023	83,294
2024	80,835
2025	77,719
Thereafter	814,673