Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following table presents the changes in the carrying amount of goodwill for the nine months ended September 30, 2023:

	General rentals		Specialty		Total
Balance at January 1, 2023 (1)	$	4,980	$	1,046	$	6,026
Goodwill related to acquisitions (2)	(223)		(11)		(234)
Foreign currency translation and other adjustments	2		(2)		—
Balance at September 30, 2023 (1)	$	4,759	$	1,033	$	5,792

 

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(1)The total carrying amount of goodwill for all periods in the table above is reflected net of $1.557 billion of accumulated impairment charges, which were primarily recorded in our general rentals segment.

(2)Includes goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period. The decrease in goodwill related to acquisitions above primarily reflects measurement period adjustments associated with the December 2022 acquisition of Ahern Rentals. For additional detail on the Ahern Rentals acquisition, see note 3 to our condensed consolidated financial statements.

Other intangible assets were comprised of the following at September 30, 2023 and December 31, 2022:  

	September 30, 2023
	Weighted-Average Remaining Amortization Period	Gross Carrying Amount			Accumulated Amortization			Net Amount
Non-compete agreements	4 years		$	176		$	50		$	126
Customer relationships	6 years		$	2,694		$	2,095		$	599
Trade names and associated trademarks	2 years		$	9		$	6		$	3

	December 31, 2022
	Weighted-Average Remaining Amortization Period	Gross Carrying Amount			Accumulated Amortization			Net Amount
Non-compete agreements	3 years		$	69		$	22		$	47
Customer relationships	5 years		$	2,349		$	1,949		$	400
Trade names and associated trademarks	3 years		$	14		$	9		$	5

Our other intangibles assets, net at September 30, 2023 include the assets set forth in the table below associated with the acquisition of Ahern Rentals that is discussed in note 3 to our condensed consolidated financial statements. No residual value has been assigned to these assets. The non-compete agreements are being amortized on a straight-line basis and the customer relationships are being amortized using the sum of the years' digits method, and we believe that such methods best reflect the estimated pattern in which the economic benefits will be consumed. The intangible asset values are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period.

	September 30, 2023
	Weighted-Average Remaining Amortization Period	Net Carrying Amount
Non-compete agreements	4 years	$	82
Customer relationships	8 years	275

Amortization expense for other intangible assets was $66 and $53 for the three months ended September 30, 2023 and 2022, respectively, and $210 and $170 for the nine months ended September 30, 2023 and 2022, respectively. The year-over-year increases primarily reflect the impact of the Ahern Rentals acquisition discussed above.

As of September 30, 2023, estimated amortization expense for other intangible assets for each of the next five years and thereafter is as follows:  

2023		$	60
2024	208
2025	166
2026	123
2027	81
Thereafter	90
Total		$	728