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Goodwill and Intangibles
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles

NOTE 6 – 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, 2017

   $ 177,090      $ (70,004    $ 107,086  

Business combinations

     47,727        —          47,727  

Other

     653        —          653  
  

 

 

    

 

 

    

 

 

 

December 31, 2017

     225,470        (70,004      155,466  

Business combinations

     17,023        —          17,023  

Other

     560        —          560  
  

 

 

    

 

 

    

 

 

 

December 31, 2018

   $ 243,053      $ (70,004    $ 173,049  
  

 

 

    

 

 

    

 

 

 

Other changes included in the above table for the years ended December 31, 2018 and 2017 include minor adjustments for the allocation of certain acquisitions still under measurement as well as several immaterial tuck-in acquisitions. For additional information regarding changes to goodwill resulting from acquisitions, see Note 15, Business Combinations.

At October 1, 2018, 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, 2018. In addition, no impairment of goodwill was recognized for the years ended December 31, 2017 or 2016.

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,  
     2018      2017  
     Gross             Net      Gross             Net  
     Carrying      Accumulated      Book      Carrying      Accumulated      Book  
     Amount      Amortization      Value      Amount      Amortization      Value  

Amortized intangibles:

                 

Customer relationships

   $ 148,635      $ 52,514      $ 96,121      $ 121,015      $ 38,651      $ 82,364  

Covenants not-to-compete

     14,682        7,572        7,110        11,807        4,773        7,034  

Trademarks and tradenames

     64,432        18,256        46,176        58,136        14,076        44,060  

Backlog

     14,060        13,677        383        13,600        9,067        4,533  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 241,809      $ 92,019      $ 149,790      $ 204,558      $ 66,567      $ 137,991  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

There was no intangible asset impairment loss for the years ended December 31, 2018, 2017 and 2016.

The gross carrying amount of intangibles increased approximately $37.3 million and $77.7 million during the years ended December 31, 2018 and 2017, respectively. Intangibles associated with business combinations accounted for approximately $36.1 million and $76.8 million of the increases during the years ended December 31, 2018 and 2017, respectively, with the remaining changes due to other factors. For more information, see Note 15, Business Combinations. Amortization expense on intangible assets totaled approximately $25.4 million, $26.9 million and $11.3 million during the years ended December 31, 2018, 2017 and 2016, respectively. Remaining estimated aggregate annual amortization expense is as follows (in thousands):

 

2019

   $ 23,250  

2020

     22,318  

2021

     21,012  

2022

     20,094  

2023

     17,183  

Thereafter

     45,933