Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2022	$	11,792	$	126,166	$	137,958
Additions (a)	32,296		—		32,296

Balance at December 31, 2023	$	44,088	$	126,166	$	170,254

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(a) Represents the acquisition of BROSCO. For additional information, see Note 6, Acquisitions.

At December 31, 2023 and 2022, 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 2023 and 2022, we acquired trade names and customer relationships as discussed in Note 6, Acquisitions. The trade name acquired in the BROSCO Acquisition has a useful life of 15 years and the trade name acquired in the Coastal Plywood Acquisition had a useful life of one year. The weighted-average useful life for customer relationships from the date of purchase is approximately 11 years. During the years ended December 31, 2023 and 2022, we recognized $17.7 million and $8.2 million, respectively, of amortization expense for intangible assets. Amortization expense for trade names and customer relationships is expected to be approximately $19 million per year for the next five years.

Intangible assets consisted of the following:


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	27,600	$	(1,000)	$	26,600
Customer relationships	195,050		(30,907)		164,143
	$	222,650	$	(31,907)	$	190,743


	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