Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 5 — Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets of acquired businesses. Goodwill is not amortized but is evaluated for impairment on an annual basis or more frequently if impairment indicators arise. To date, the Company has not recognized an impairment of its goodwill.

The following table sets forth the amounts of goodwill by reportable segment, as described in Note 14 — Segment Information, as of December 31, 2022 and 2021:

	December 31, 2021		Acquisitions1		December 31, 2022
	(in thousands)
Housekeeping	$	42,377	$	—	$	42,377
Dietary	32,378		774		33,152
Total Goodwill	$	74,755	$	774	$	75,529

1.During the year ended December 31, 2022, the Company’s goodwill increased $0.7 million due to a measurement period adjustment pertaining to a prior period acquisition. The Company finalized the acquisition accounting for this transaction in 2022.

Intangible Assets

The Company’s other intangible assets were obtained through acquisitions and are recorded at their fair values at the date of acquisition. The following table sets forth the amounts of other intangible assets as of December 31, 2022 and 2021:

	December 31, 2022						December 31, 2021
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
	(in thousands)
Customer relationships	$	45,634	$	32,211	$	13,423	$	45,634	$	27,704	$	17,930
Trade names	1,731		191		1,540		1,731		55		1,676
Patents	1,086		232		854		1,086		95		991
Non-compete agreements	233		104		129		233		25		208
Total other intangible assets	$	48,684	$	32,738	$	15,946	$	48,684	$	27,879	$	20,805

No acquisitions occurred during the year ended December 31, 2022. Intangible assets with determinable useful lives are amortized on a straight-line basis over their estimated useful lives. The weighted-average amortization period of customer relationships, trade names, patents, and non-compete agreements are approximately 10 years, 13 years, 8 years, and 4 years, respectively.

The following table sets forth the estimated amortization expense for intangibles subject to amortization for 2023, the following four fiscal years and thereafter:

Period/Year	Total Amortization Expense
	(in thousands)
2023	$	3,819
2024	$	2,685
2025	$	2,685
2026	$	2,666
2027	$	1,196
Thereafter	$	2,895
Total	$	15,946

Amortization expense for the years ended December 31, 2022, 2021, and 2020 was $4.9 million, $4.4 million and $4.2 million, respectively.