Intangible Assets, Net

3 Months Ended

Mar. 31, 2025

7. Intangible Assets, Net

The Company’s intangible assets, net, consisted of the following:

	March 31, 2025							December 31, 2024
	Gross Amount		Accumulated Amortization			Net Carrying Amount		Gross Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Customer and referral relationships	$	157,429	$	(42,025	)	$	115,404	$	156,747	$	(39,218	)	$	117,529
Tradenames		57,239		-			57,239		57,041		-			57,041
Non-compete agreements		13,322		(8,637	)		4,685		13,077		(8,336	)		4,741
	$	227,990	$	(50,662	)	$	177,328	$	226,865	$	(47,554	)	$	179,311

Tradenames, customer and referral relationships, and non-compete agreements are related to the businesses acquired. The value assigned to tradenames has an indefinite life and is tested at least annually for impairment using the relief from royalty method in conjunction with the Company’s annual goodwill impairment test. The value assigned to customer and referral relationships is being amortized over their respective estimated useful lives which range from 8.0 to 15.0 years. Non-compete agreements are amortized over the respective term of the agreements which range from 5.0 to 6.0 years. For the three months ended March 31, 2025, the weighted average amortization period for customer and referral relationships was 12.8 years and the weighted average amortization period for non-compete agreements was 5.7 years. During the year ended December 31, 2024, the Company recognized charges of $2.0 million related to the impairment of assets held for sale. This impairment loss is presented in the impairment of assets held for sale in the Consolidated Statements of Income.

The following table details the amount of amortization expense recorded for intangible assets for the periods presented:

	Three Months Ended
	March 31, 2025		March 31, 2024
	(In thousands)
Customer and referral relationships	$	2,807	$	1,818
Non-compete agreements		301		163
	$	3,108	$	1,981

Based on the balance of referral relationships and non-compete agreements as of March 31, 2025, the expected amount to be amortized in 2025 and thereafter by year is as follows:

For the Year Ending December 31,	Customer and Referral Relationships		Non-Compete Agreements
	(In thousands)
2025 (excluding the three months ended March 31, 2025)	$	8,870	$	853
2026		11,365		1,013
2027		11,202		887
2028		10,933		808
2029		10,555		600
Thereafter	$	62,479	$	524