Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Goodwill represents the excess of the purchase price and related costs over the fair value of the net tangible and intangible assets of businesses acquired.

The carrying amount of our goodwill by segment is as follows:


	Building Materials Distribution		Wood Products		Total
	(thousands)
Balance at December 31, 2021	$	11,792	$	48,590	$	60,382
Additions (a)	—		77,576		77,576

Balance at December 31, 2022	$	11,792	$	126,166	$	137,958

___________________________________

(a) Represents the acquisition of two Coastal Plywood facilities. For additional information, see Note 7, Acquisition.

At December 31, 2022 and 2021, intangible assets represented the values assigned to trade names and trademarks and customer relationships. We maintain trademarks for our manufactured wood products, particularly EWP. Our key registered trademarks are perpetual in duration as long as we continue to timely file all post registration maintenance documents related thereto. These trade names and trademarks have indefinite lives, are not amortized, and have a carrying amount of $8.9 million. In addition, in 2022, we acquired a trade name and customer relationships as discussed in Note 7, Acquisition. This acquired trade name has a useful life of one year. The weighted-average useful life for customer relationships from the date of purchase is approximately 10 years. During the years ended December 31, 2022 and 2021, we recognized $8.2 million and $1.2 million, respectively, of amortization expense for intangible assets. Amortization expense is expected to be approximately $16.3 million per year for the next five years.

Intangible assets consisted of the following:


	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(292)	$	9,308
Customer relationships	166,050		(13,925)		152,125
	$	175,650	$	(14,217)	$	161,433


	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	8,900	$	—	$	8,900
Customer relationships	12,450		(5,999)		6,451
	$	21,350	$	(5,999)	$	15,351