Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired in business combinations. The following table summarizes changes in the carrying amount of goodwill by segment for the three months ended March 31, 2023 (in thousands):


	TTS		Werner Logistics		Total
Balance as of December 31, 2022	$	53,897	$	78,820	$	132,717
Purchase accounting adjustments (1)	(7,841)		4,228		(3,613)
Balance as of March 31, 2023	$	46,056	$	83,048	$	129,104

(1) The purchase accounting adjustments consist of post-closing adjustments related to net assets assumed in the acquisition of ReedTMS. For additional information regarding these purchase accounting adjustments, see Note 2.

The following table presents acquired intangible assets (in thousands):


	March 31, 2023						December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	80,200	$	(7,974)	$	72,226	$	64,900	$	(5,714)	$	59,186
Trade names	24,600		(2,796)		21,804		24,600		(2,284)		22,316
Total intangible assets	$	104,800	$	(10,770)	$	94,030	$	89,500	$	(7,998)	$	81,502

Amortization expense on intangible assets was $2.8 million and $1.4 million for the three months ended March 31, 2023 and 2022, respectively, and is reported in depreciation and amortization on the consolidated statements of income. As of March 31, 2023, we estimate future amortization expense for intangible assets will be $7.6 million for the remainder of 2023, and $10.1 million for each of the five succeeding fiscal years.