Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6. Goodwill and Other Intangible Assets

Due to the change in segments in the first quarter of 2023, consolidated goodwill was reallocated to the two new reporting units based on their relative fair values. The Company performed an evaluation before and after the change and concluded it was not more-likely-than-not that the fair value of our reporting units was less than its carrying value. There were no accumulated impairment losses of goodwill at the beginning of the period.

The following table presents the carrying amount of Goodwill by segment (in thousands):


	ITS		Logistics		Consolidated
Balance at December 31, 2021	$	371,641	$	205,272	$	576,913
Acquisitions		-		52,489		52,489
Balance at December 31, 2022	$	371,641	$	257,761	$	629,402
Acquisitions		-		104,293		104,293
Balance at December 31, 2023	$	371,641	$	362,054	$	733,695

The components of the "Other intangible assets” are as follows (in thousands):


					Net
	Gross		Accumulated		Carrying
As of December 31, 2023:	Amount		Amortization		Value		Life
Customer relationships	$	376,956	$	92,827	$	284,129	5-15 years

Carrier network and agent relationships		15,000		8,563		6,437	4 years

Developed technology		17,223		3,247		13,976	4-7 years

Trade name		6,200		6,135		65	18 months
Consolidated Total	$	415,379	$	110,772	$	304,607


					Net
	Gross		Accumulated		Carrying
As of December 31, 2022:	Amount		Amortization		Value		Life
Customer relationships	$	249,223	$	72,157	$	177,066	5-15 years

Carrier network and agent relationships		15,000		4,813		10,187	4 years

Developed technology		10,500		1,449		9,051	4-7 years

Trade name		6,200		5,118		1,082	18 months
Consolidated Total	$	280,923	$	83,537	$	197,386

The above intangible assets are amortized using the straight-line method. Amortization expense was $27.2 million and $26.6 million for the years ended December 31, 2023 and 2022, respectively. The remaining weighted average life of all definite lived intangible assets was 11.32 years and 9.57 years for the years ended December 31, 2023 and 2022, respectively. Amortization expense for the next five years is expected to be as follows (in thousands):


	Total
Year 1	$	34,448
Year 2		33,345
Year 3		30,645
Year 4		30,287
Year 5		27,385