GOODWILL (Notes)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure

Goodwill

The following table sets forth the changes in the carrying value of goodwill:


	Six Months Ended
	June 30, 2021
	EES		CSS		UBS		Total
	(In thousands)
Beginning balance January 1(1)	$	853,456	$	1,115,500	$	1,218,213	$	3,187,169
Adjustments to goodwill for acquisitions (Note 4)(2)	5,254		8,602		85		13,941
Foreign currency exchange rate changes	12,334		1,438		8,629		22,401
Ending balance June 30	$	871,044	$	1,125,540	$	1,226,927	$	3,223,511

(1) The beginning balance excludes $26.1 million of goodwill that was classified as held for sale on the UBS segment as of December 31, 2020 and disposed in the first quarter of 2021 as part of the divestitures disclosed in Note 4, "Acquisitions and Disposals".

(2) Includes the effect on goodwill of the adjustments to the assets acquired and liabilities assumed in the merger with Anixter since their initial measurement, as described in Note 4, "Acquisitions and Disposals".

Intangible Assets

The components of intangible assets are as follows:


		June 30, 2021						December 31, 2020
	Life (in years)	Gross Carrying Amount (1)		Accumulated Amortization (1)		Net Carrying Amount		Gross Carrying Amount (1)		Accumulated Amortization (1)		Net Carrying Amount
Intangible assets:		(In thousands)
Trademarks	Indefinite	$	795,926	$	—	$	795,926	$	833,793	$	—	$	833,793
Customer relationships(2)	10 - 20	1,439,769		(271,054)		1,168,715		1,434,554		(227,585)		1,206,969
Distribution agreements(2)	10 - 19	29,212		(21,884)		7,328		29,212		(21,040)		8,172
Trademarks(2)	Less than 1 - 15	64,047		(17,434)		46,613		24,898		(11,415)		13,483
Non-compete agreements	2 - 5	4,374		(2,418)		1,956		4,462		(1,384)		3,078
		$	2,333,328	$	(312,790)	$	2,020,538	$	2,326,919	$	(261,424)	$	2,065,495

(1) Excludes the original cost and related accumulated amortization of fully-amortized intangible assets.

(2) The net carrying amount as of December 31, 2020 excluded $1.0 million of trademarks, $3.3 million of customer relationships and $1.4 million of distribution agreements that were classified as held for sale and disposed in the first quarter of 2021 as part of the divestitures disclosed in Note 4, "Acquisitions and Disposals".

Amortization expense related to intangible assets totaled $27.1 million and $10.1 million for the three months ended June 30, 2021 and 2020, respectively, and $48.7 million and $18.6 million for the six months ended June 30, 2021 and 2020, respectively. For the three and six months ended June 30, 2021, amortization expense includes $5.0 million resulting from the changes in estimated useful lives of certain legacy WESCO trademarks that are migrating to the Company's master brand architecture, as described in Note 2, "Accounting Policies".

The following table sets forth the remaining estimated amortization expense for intangible assets for the next five years and thereafter:


For year ending December 31,	(In thousands)
2021	$	70,996
2022	93,064
2023	83,704
2024	81,224
2025	78,089
Thereafter	817,535