Goodwill and Intangibles

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 5 – GOODWILL AND INTANGIBLES

Goodwill

The change in carrying amount of goodwill was as follows (in thousands):


	Goodwill (Gross)			Accumulated Impairment Losses			Goodwill (Net)
January 1, 2016	$	160,516		$	(70,004	)	$	90,512
Business combinations		16,918			—			16,918
Other		(344	)		—			(344	)

December 31, 2016		177,090			(70,004	)		107,086
Business combinations		47,727			—			47,727
Other		653			—			653

December 31, 2017	$	225,470		$	(70,004	)	$	155,466

Other changes included in the above table for the years ended December 31, 2017 and 2016 include minor adjustments for the allocation of certain acquisitions still under measurement. In addition, other changes for the year ended December 31, 2017 include multiple immaterial tuck-in acquisitions. For additional information regarding changes to goodwill resulting from acquisitions, see Note 15, Business Combinations.

At October 1, 2017, our measurement date, we performed a qualitative analysis that weighed all evidence of potential impairment, whether positive or negative, and determined that no factors existed that indicated an impairment of goodwill more likely than not existed. As such, no impairment of goodwill was recognized for the year ended December 31, 2017. In addition, no impairment of goodwill was recognized for the years ended December 31, 2016 or 2015.

Intangibles, net

The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands):


	As of December 31,
	2017						2016
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Amortized intangibles:
Customer relationships	$	121,015	$	38,651	$	82,364	$	80,909	$	27,533	$	53,376
Covenants not-to-compete		11,807		4,773		7,034		8,602		2,466		6,136
Trademarks and tradenames		58,136		14,076		44,060		37,303		10,498		26,805
Backlog		13,600		9,067		4,533		—		—		—

	$	204,558	$	66,567	$	137,991	$	126,814	$	40,497	$	86,317

There was no intangible asset impairment loss for the years ended December 31, 2017, 2016 and 2015.

The gross carrying amount of intangibles increased approximately $77.7 million and $30.4 million during the years ended December 31, 2017 and 2016, respectively. Intangibles associated with business combinations accounted for approximately $76.8 million and $30.3 million of the increases during the years ended December 31, 2017 and 2016, respectively, with the remaining changes due to other factors. For more information, see Note 15, Business Combinations. Amortization expense on intangible assets totaled approximately $26.9 million, $11.3 million and $6.3 million during the years ended December 31, 2017, 2016 and 2015, respectively. Remaining estimated aggregate annual amortization expense is as follows (in thousands):


2018	$	23,516
2019		18,387
2020		17,671
2021		16,653
2022		15,735
Thereafter		46,029

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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