Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

During the years ended December 31, 2023, 2022, and 2021, the change in the net carrying amount of goodwill was as follows (in thousands):


Balance at January 1, 2021	$	127,997


Divestitures	(735)
Balance at December 31, 2021	127,262
Acquisition (1)	2,120
Divestitures	(57)

Balance at December 31, 2022	129,325

Divestitures (2)	(50)

Balance at December 31, 2023	$	129,275

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(1)Please read Note 5—Acquisitions for further discussion.

(2)In December 2022, we purchased three retail stores in Washington. $50 thousand of the 2022 payment was refunded to us in 2023; the refund was accounted for as a reduction of goodwill. Please read Note 5—Acquisitions for further discussion.

The gross carrying value of goodwill was $202.9 million as of December 31, 2021, $205.0 million as of December 31, 2022, and $205.0 million as of December 31, 2023. As of December 31, 2021, 2022, and 2023, we had cumulative charges related to divestitures of $75.6 million, $75.7 million, and $75.8 million, respectively.

Intangible assets consisted of the following (in thousands):



	December 31,
	2023		2022

Intangible assets:



Trade names and trademarks	$	6,267	$	6,267
Customer relationships	32,064		32,064
Other	261		261
Total intangible assets	38,592		38,592
Accumulated amortization:



Trade name and trademarks	(5,470)		(5,383)
Customer relationships	(22,204)		(19,632)
Other	—		—
Total accumulated amortization	(27,674)		(25,015)
Net:



Trade name and trademarks	797		884
Customer relationships	9,860		12,432
Other	261		261
Total intangible assets, net	$	10,918	$	13,577

Amortization expense was approximately $2.7 million for each of the years ended December 31, 2023, 2022, and 2021. Our intangible assets related to customer relationships and trade names have an average useful life of 13.5 years. Expected amortization expense for each of the next five years and thereafter is as follows (in thousands):


Year Ended	Amount
2024	$	1,400
2025	979
2026	979
2027	979
2028	979
Thereafter	5,602
	$	10,918