Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill, Net

Our annual goodwill impairment review is performed during the fourth quarter each year-end using a quantitative approach. We tested goodwill for impairment at the reporting unit level utilizing the income approach which included a discounted cash flow method with a market approach, and we determined that there was no goodwill impairment for the year ended December 31, 2024. All reporting units with goodwill had estimated fair values that exceeded their carrying values by at least 49% as of December 31, 2024.

During our assessment during the fourth quarter ended December 31, 2023, one reporting unit had a fair value that was 2% less than the carrying value and we recorded a $1,644 goodwill impairment, which was $2,222 after taking into account the effect of

deferred income taxes. The impairment was primarily driven by a decline in projected cash flows, including revenues and profitability. The impairment charges are included in the asset impairments within the consolidated statements of income for the year ended December 31, 2023. All other reporting units with goodwill had estimated fair values that exceeded their carrying values by at least 16% as of December 31, 2023. There was no goodwill impairment for the year ended December 31, 2022.

The changes in the goodwill balances by reportable segment are as follows:


	North America Regions		U.S. Federal		Europe		Other		Total
Carrying Value of Goodwill
Balance, December 31, 2022	$	42,829	$	3,981	$	5,932	$	17,891	$	70,633
Goodwill acquired during the year	—		—		6,855		—		6,855
Remeasurement adjustments	—		—		(165)		—		(165)
Impairment charges, net of tax	(2,222)		—		—		—		(2,222)
Foreign currency translation	73		—		413		—		486
Balance, December 31, 2023	40,680		3,981		13,035		17,891		75,587

Fair value allocation for change in reportable segments	(1,474)		—		—		1,474		—
Goodwill disposed of through sale of business (1)	—		—		—		(8,529)		(8,529)

Foreign currency translation	(257)		—		(496)		—		(753)
Balance, December 31, 2024	$	38,949	$	3,981	$	12,539	$	10,836	$	66,305
(1) See Note 4. Business Acquisitions and Divestitures for additional information.
Accumulated Goodwill Impairment
Balance, December 31, 2023	$	(2,222)	$	—	$	(1,016)	$	—	$	(3,238)
Balance, December 31, 2024	$	(2,222)	$	—	$	(1,016)	$	—	$	(3,238)

Intangible Assets, Net

Definite-lived intangible assets, net consisted of the following:


	As of December 31,
	2024		2023
Gross carrying amount
Customer contracts	$	6,898	$	8,859
Customer relationships	17,572		21,182
Non-compete agreements	2,535		3,013
Technology	1,754		2,723
Tradenames	927		1,370
Subsurface land easements	4,274		—
Total gross carrying amount	33,960		37,147
Accumulated Amortization
Customer contracts	6,898		8,859
Customer relationships	13,318		14,979
Non-compete agreements	2,535		3,013
Technology	1,753		2,723
Tradenames	642		765

Total accumulated amortization	25,146		30,339
Intangible assets, net	$	8,814	$	6,808

Customer contracts are amortized ratably over the period of the acquired customer contracts ranging in periods from approximately one to eight years. All other intangible assets are amortized over periods ranging from approximately four to twenty years, as defined by the nature of the respective intangible asset.

Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. We annually assess whether a change in the useful life is necessary, or more frequently if events or circumstances warrant. During the year ended December 31, 2024, we included purchased subsurface land easements in intangible assets, which shall be amortized over the twenty-year life of the pipelines. No other changes to useful lives were made during the years ended December 31, 2024, 2023, and 2022.

The table below sets forth amortization expense:


		Year Ended December 31,
	Location	2024		2023		2022
Customer contracts	Cost of revenues	$	—	$	—	$	551
Customer relationships	Selling, general and administrative expenses	1,833		2,141		1,303

Technology	Selling, general and administrative expenses	—		—		1
Tradenames	Selling, general and administrative expenses	296		225		3
Subsurface land easements	Selling, general and administrative expenses	5		—		—
Total amortization expense		$	2,134	$	2,366	$	1,858

Amortization expense for our definite-lived intangible assets for the next five years to be included in selling, general, and administrative expenses is as follows:


	Estimated Amortization Expense
2025	$	2,238
2026	1,895
2027	821
2028	369
2029	214
Thereafter	3,277
Total	$	8,814