Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6. Goodwill and Other Intangible Assets

Our goodwill is allocated between two reporting units, ITS and Logistics. In accordance with the FASB issued guidance in the Intangibles-Goodwill and Other Topic of the Codification, we completed the required annual impairment assessment, concluding it was not more-likely-than-not that the fair value of either of our reporting units was less than the respective 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, 2022	$	371,641		$	257,761	$	629,402
Acquisitions		-			104,293		104,293
Balance at December 31, 2023	$	371,641		$	362,054	$	733,695
Acquisitions		43,398			38,510		81,908
Currency translation adjustment		(1,295	)		-		(1,295	)
Balance at December 31, 2024	$	413,744		$	400,564	$	814,309

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


					Net
	Gross		Accumulated		Carrying
As of December 31, 2024:	Amount		Amortization		Value		Life
Customer relationships	$	372,690	$	119,146	$	253,544	10-15 years

Carrier network and independent contractor relationships		15,000		12,300		2,700	4 years

Developed technology		12,700		6,531		6,169	2-7 years

Trade name		11,200		6,256		4,944	18 months to 15 years
Consolidated Total	$	411,590	$	144,233	$	267,357


					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 independent contractor 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

The above intangible assets are amortized using the straight-line method. Amortization expense was $33.5 million and $27.2 million for the years ended December 31, 2024 and 2023, respectively. The remaining weighted average life of all definite lived intangible assets was 9.69 years and 11.32 years for the years ended December 31, 2024 and 2023, respectively.

Amortization expense for the next five years is expected to be as follows (in thousands):


	Total
Year 1	$	34,260
Year 2		30,985
Year 3		30,697
Year 4		29,406
Year 5		22,696