Goodwill and Intangibles |
11. GOODWILL AND INTANGIBLES
The following tables summarize the changes in the Company’s intangible assets as of December 31, 2021 and June 30, 2022 (in thousands):
|
|
December 31, 2020 |
|
|
December 31, 2021 |
December 31, 2021 |
|
|
|
Gross Carrying Amount |
|
|
Additions |
|
|
Gross Carrying Amount |
|
|
Goodwill Impairments |
|
|
Accumulated Amortization |
|
|
Net Book Value |
|
Goodwill |
|
$ |
47,318 |
|
|
$ |
72,623 |
|
|
$ |
119,941 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
119,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
Six Months Ended
June 30, 2022 |
June 30, 2022 |
|
|
|
Gross Carrying Amount |
|
|
Additions |
|
|
Gross Carrying Amount |
|
|
Goodwill Impairments (1) |
|
|
Accumulated Amortization |
|
|
Net Book Value |
|
Goodwill |
|
$ |
119,941 |
|
|
$ |
— |
|
|
$ |
119,941 |
|
|
$ |
(29,020 |
) |
|
$ |
— |
|
|
$ |
90,921 |
|
|
(1) |
The Company engaged a third-party valuation specialist to assist management in performing an interim goodwill impairment test in March 2022. For goodwill, impairment testing is based upon the best information available using a combination of the discounted cash flow method (a form of the income approach) and the guideline public company method. As a result of the impairment testing, the Company recorded a goodwill impairment charge of $29.0 million in the three months ended March 31 2022, primarily due to the decrease in its market capitalization. The Company did not record a goodwill impairment charge for the three months ending June 30, 2022. |
The following tables summarize the changes in the Company’s intangible assets as of December 31, 2021 and June 30, 2022 (in thousands):
|
|
December 31, 2020 |
|
|
December 31, 2021 |
December 31, 2021 |
|
|
|
Gross Carrying Amount |
|
|
Additions |
|
|
Gross Carrying Amount |
|
|
Intangible Impairments |
|
|
Accumulated Amortization |
|
|
Net Book Value |
|
Trademarks |
|
$ |
31,810 |
|
|
$ |
34,100 |
|
|
$ |
65,910 |
|
|
$ |
— |
|
|
$ |
(6,332 |
) |
|
$ |
59,578 |
|
Non-competition agreement |
|
|
111 |
|
|
|
— |
|
|
|
111 |
|
|
|
— |
|
|
|
(54 |
) |
|
|
57 |
|
Transition services agreement |
|
|
23 |
|
|
|
— |
|
|
|
23 |
|
|
|
— |
|
|
|
(23 |
) |
|
|
— |
|
Customer relations |
|
|
— |
|
|
|
5,700 |
|
|
|
5,700 |
|
|
|
— |
|
|
|
(380 |
) |
|
|
5,320 |
|
Other |
|
|
— |
|
|
|
700 |
|
|
|
700 |
|
|
|
— |
|
|
|
(700 |
) |
|
|
— |
|
Total intangibles |
|
$ |
31,944 |
|
|
$ |
40,500 |
|
|
$ |
72,444 |
|
|
$ |
— |
|
|
$ |
(7,489 |
) |
|
$ |
64,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
Six Months Ended
June 30, 2022 |
June 30, 2022 |
|
|
|
Gross Carrying Amount |
|
|
Additions |
|
|
Gross Carrying Amount |
|
|
Intangible Impairments |
|
|
Accumulated Amortization |
|
|
Net Book Value |
|
Trademarks |
|
$ |
65,910 |
|
|
$ |
— |
|
|
$ |
65,910 |
|
|
$ |
— |
|
|
$ |
(9,643 |
) |
|
$ |
56,267 |
|
Non-competition agreement |
|
|
111 |
|
|
|
— |
|
|
|
111 |
|
|
|
— |
|
|
|
(72 |
) |
|
|
39 |
|
Transition services agreement |
|
|
23 |
|
|
|
— |
|
|
|
23 |
|
|
|
— |
|
|
|
(23 |
) |
|
|
— |
|
Customer relations |
|
|
5,700 |
|
|
|
— |
|
|
|
5,700 |
|
|
|
— |
|
|
|
(665 |
) |
|
|
5,035 |
|
Other |
|
|
700 |
|
|
|
— |
|
|
|
700 |
|
|
|
— |
|
|
|
(700 |
) |
|
|
— |
|
Total intangibles |
|
$ |
72,444 |
|
|
$ |
— |
|
|
$ |
72,444 |
|
|
$ |
— |
|
|
$ |
(11,103 |
) |
|
$ |
61,341 |
|
The following table sets forth the estimated aggregate amortization of the Company’s in-place intangible assets and favorable intangible assets for the next five years and thereafter (amounts in thousands):
Remainder of 2022 |
|
$ |
3,614 |
|
2023 |
|
|
7,214 |
|
2024 |
|
|
7,171 |
|
2025 |
|
|
7,130 |
|
2026 |
|
|
7,130 |
|
Thereafter |
|
|
29,082 |
|
Total |
|
$ |
61,341 |
|
|