Goodwill and Intangibles

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLES

Goodwill

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


	Installation		Other		Consolidated

Goodwill (gross) - January 1, 2023	$	355,226	$	88,333	$	443,559
Business combinations	14,325		—		14,325
Other	340		5,273		5,613
Goodwill (gross) - June 30, 2023	369,891		93,606		463,497
Accumulated impairment losses	(70,004)		—		(70,004)
Goodwill (net) - June 30, 2023	$	299,887	$	93,606	$	393,493

Other changes presented in the above table primarily include one immaterial acquisition and adjustments for the allocation of certain acquisitions still under measurement made during the six months ended June 30, 2023, including a change in tax election that resulted in a $4.4 million change in purchase price for a 2022 acquisition. For additional information regarding changes to goodwill resulting from acquisitions, see Note 17, Business Combinations.

We test goodwill for impairment annually during the fourth quarter of our fiscal year or earlier if there is an impairment indicator. Accumulated impairment losses included within the above table were incurred over multiple periods and were all associated with the Installation segment, with the latest impairment charge being recorded during the year ended December 31, 2010.

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 June 30,						As of December 31,
	2023						2022
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Amortized intangibles:
Customer relationships	$	349,761	$	162,254	$	187,507	$	338,050	$	145,722	$	192,328
Covenants not-to-compete	31,289		21,954		9,335		30,899		20,086		10,813
Trademarks and tradenames	125,335		43,461		81,874		119,612		39,638		79,974
Backlog	21,635		20,925		710		20,815		20,457		358
	$	528,020	$	248,594	$	279,426	$	509,376	$	225,903	$	283,473

The gross carrying amount of intangibles increased approximately $18.6 million during the six months ended June 30, 2023 primarily due to business combinations. For more information, see Note 17, Business Combinations.

Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended):


Remainder of 2023	$	21,644
2024	39,938
2025	34,396
2026	30,445
2027	26,160
Thereafter	126,843