GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]


	December 31, 2023		Acquisitions		September 30, 2024
Goodwill	$	86,011	$	8,713	$	94,724

We believe significant synergies are expected to arise from our strategic acquisitions and their assembled work forces. This factor contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, we recorded goodwill for each acquisition. A portion of acquired goodwill will be amortizable for tax purposes. As of September 30, 2024, there has been no impairment of goodwill based on the qualitative assessments performed by the Company.


Gross Intangible Assets	December 31, 2023		Acquisitions		September 30, 2024
Customer relationships	$	127,843	$	20,087	$	147,930
Developed technology	12,001		3,200		15,201
Trade names	880		—		880
Non-compete agreements	1,032		—		1,032
Total	$	141,756	$	23,287	$	165,043

The gross carrying amount and accumulated amortization of our intangible assets are as follows for the periods presented below (in thousands, except weighted average periods):


	Weighted Average Amortization Period (in Years)	Gross		Accumulated Amortization		Net
September 30, 2024
Customer relationships	8.6	$	147,930	$	(78,805)	$	69,125
Developed technology	6.5	15,201		(10,991)		4,210
Trade names	4.3	880		(880)		—
Non-compete agreements	5.2	1,032		(938)		94
	8.3	$	165,043	$	(91,614)	$	73,429

December 31, 2023
Customer relationships	8.5	$	127,843	$	(67,165)	$	60,678
Developed technology	6.9	12,001		(10,701)		1,300
Trade names	4.3	880		(880)		—
Non-compete agreements	5.2	1,032		(928)		104
	8.3	$	141,756	$	(79,674)	$	62,082

We record amortization expenses using the straight-line method over the estimated useful lives of the intangible assets, as noted above. Amortization expenses recorded in operating expenses were $11,790 and $9,929 for the nine months ended September 30, 2024 and 2023, respectively. Amortization expenses recorded in cost of sales were $150 and $368 for the nine months ended September 30, 2024 and 2023, respectively. There was no impairment of intangibles during the nine months ended September 30, 2024 based on the qualitative assessment performed by the Company. However, if market, political and other conditions over which we have no control continue to affect the capital markets and our stock price declines, we may experience an impairment of our intangibles in future quarters.

The following table summarizes the future estimated amortization expense relating to our intangible assets for the period presented below (in thousands):


	September 30, 2024
2024	$	4,439
2025	16,896
2026	13,781
2027	11,586
2028	10,141
2029	7,978
Thereafter	8,608
	$	73,429