Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

NOTE 5. INTANGIBLE ASSETS

Intangible assets consist of the following:

(dollar amounts in thousands)	Estimated useful life in years	Average remaining life in years		Cost		Accumulated amortization			Net book value
June 30, 2022
Customer relationships	8 to 11		6.8	$	50,285	$	(15,548	)	$	34,737
Non-compete agreements	5		3.7		3,296		(830	)		2,466
Customer backlog	0.5	—			2,200		(2,200	)		—
Trade name	8		6.8		1,200		(188	)		1,012
Total amortizing					56,981		(18,766	)		38,215
Trade name - non-amortizing	Indefinite				5,871		—			5,871
Total				$	62,852	$	(18,766	)	$	44,086
December 31, 2021
Customer relationships	8 to 11	7.3		$	50,285	$	(12,991	)	$	37,294
Non-compete agreements	5		4.2		3,296		(499	)		2,797
Customer backlog	0.5	—			1,900		(1,900	)		—
Trade name	8		7.3		1,200		(113	)		1,087
Total amortizing					56,681		(15,503	)		41,178
Trade name - non-amortizing	Indefinite				5,871		—			5,871
Total				$	62,552	$	(15,503	)	$	47,049

The Company assesses potential impairment of its goodwill and intangible assets when there is evidence that events or circumstances have occurred that would indicate the recovery of an asset’s carrying value is unlikely.  The Company also assesses potential impairment of its goodwill and intangible assets with indefinite lives on an annual basis regardless of whether there is evidence of impairment.  If indicators of impairment were to be present in intangible assets used in operations and future discounted cash flows were not expected to be sufficient to recover the asset’s carrying amount, an impairment loss would be charged to expense in the period identified. The amount of an impairment loss that would be recognized is the excess of the asset’s carrying value over its fair value.  Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results.  The Company last conducted a qualitative analysis of its goodwill and intangible assets in the fourth quarter 2021, with no indicators of impairment.  In addition, no impairment triggering events occurred during the six months ended June 30, 2022.  Determining fair value of a reporting unit is judgmental and involves the use of significant estimates and assumptions.  The Company bases its fair value estimates on assumptions that it believes are reasonable but are uncertain and subject to changes in market conditions. Intangible assets with finite useful lives are amortized over their respective useful lives.  Amortization expense in the six months ended June 30, 2022 and 2021, was $3.0 million and $1.7 million, respectively.  Based on the carrying values at June 30, 2022 and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be $3.0 million for the remainder of fiscal year 2022, $5.9 million annually in 2023 through 2025, $5.4 million in 2026 and $5.2 million in 2027.