Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 7. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets. A summary of intangible assets as of September 30, 2024 and December 31, 2023 is as follows.


	September 30, 2024
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	78,166	$	(44,306	)	$	33,860
Non-compete agreements		500		(375	)		125
Trade names		10,980		(9,178	)		1,802
Technology, Patents, and Other		26,133		(26,133	)		—
Total	$	115,779	$	(79,992	)	$	35,787

	December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	78,166	$	(38,511	)	$	39,655
Non-compete agreements		500		(321	)		179
Trade names		10,980		(9,006	)		1,974
Technology, Patents, and Other		26,133		(26,133	)		—
Total	$	115,779	$	(73,971	)	$	41,808

Amortization expense on intangible assets was $2.0 million and $2.0 million for the three months ended September 30, 2024 and 2023 respectively, and $6.0 million and $6.0 million for the nine months ended September 30, 2024 and 2023, respectively.

Impairment. We analyzed definite lived intangible assets for impairment as of September 30, 2024 and December 31, 2023, in accordance with Accounting Standards Codification 360 Property, Plant, and Equipment, noting no impairment indicators were present. We analyzed goodwill for impairment as of September 30, 2024 and December 31, 2023, in accordance with Accounting

Standards Codification 350 Intangibles—Goodwill and Other, noting no impairment indicators were present. For our annual goodwill impairment test as of December 31, 2023, we performed a qualitative assessment to determine if it was more likely than not (that is, a likelihood of more than 50 percent) that the fair value of our reporting unit was less than its carrying value as of the test date. We evaluated events and circumstances since the date of our last quantitative or qualitative assessment, including macroeconomic conditions, industry and market conditions, and our overall financial performance, and it was determined that the reporting unit fair value was, more likely than not, greater than the carrying amount. Therefore, no impairment charges were recorded related to goodwill for the periods ended September 30, 2024 and December 31, 2023.

The following table presents a roll-forward of goodwill for the periods ended September 30, 2024 and December 31, 2023:


(in thousands)	Goodwill, Gross		Accumulated Impairment			Goodwill, Net
Balance at December 31, 2022	$	94,436	$	(70,504	)	$	23,932
Additions		—		—			—
Balance at December 31, 2023	$	94,436	$	(70,504	)	$	23,932
Additions		—		—			—
Balance at September 30, 2024	$	94,436	$	(70,504	)	$	23,932