Annual report pursuant to Section 13 and 15(d)

Acquisitions, Goodwill and Other Intangible Assets

v3.24.0.1
Acquisitions, Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisitions, Goodwill and Other Intangible Assets Acquisitions, Goodwill and Other Intangible Assets
Goodwill is recorded as part of the Company’s acquisitions and primarily arose from the acquired assembled workforce and brokerage and financing sales platforms. The Company expects all of the goodwill to be tax deductible, with the tax-deductible amount of goodwill related to the contingent and deferred consideration to be determined once the cash payments are made to settle any contingent and deferred consideration. The goodwill resulting from acquisitions is allocated to the Company’s one reporting unit.
Goodwill and intangible assets, net consisted of the following (in thousands):
December 31, 2023 December 31, 2022
Gross
Carrying
Amount		 Accumulated
Amortization 		Net Book
Value		 Gross
Carrying
Amount		 Accumulated
Amortization 		Net Book
Value
Goodwill and intangible assets:            
Goodwill $ 38,046  $ —  $ 38,046  $ 37,914  $ —  $ 37,914 
Intangible assets (1)
31,022  (17,885) 13,137  32,287  (14,505) 17,782 
$ 69,068  $ (17,885) $ 51,183  $ 70,201  $ (14,505) $ 55,696 
(1)
Weighted average remaining amortization period was 3.8 years and 4.5 years as of December 31, 2023 and 2022, respectively. Intangible assets principally include non-competes and customer relationships.
The Company recorded amortization expense for intangible assets of $4.7 million for both of the years ended December 31, 2023 and 2022 and $3.8 million for the year ended December 31, 2021.
The changes in the carrying amount of goodwill consisted of the following (in thousands):
Years Ended December 31,
2023 2022
Beginning balance $ 37,914  $ 34,071 
Additions from acquisitions —  4,030 
Impact of foreign currency translation 132  (187)
Ending balance $ 38,046  $ 37,914 
Estimated amortization expense for intangible assets by year for the next five years and thereafter consisted of the following (in thousands):
Years Ended December 31,
2024 $ 4,035 
2025 3,880 
2026 2,156 
2027 1,856 
2028 1,210 
Thereafter — 
$ 13,137 
As of December 31, 2023, the Company considered the impact of economic conditions and evaluated its goodwill and intangible assets for impairment testing. The Company estimated the recoverability of the intangible assets by comparing the carrying amount of each asset to the future undiscounted cash flows that the Company expects the asset to generate. The sum of the undiscounted expected future cash flows was greater than the carrying amount of the intangible assets. The Company concluded that there was no impairment of goodwill or intangible assets during the years ended December 31, 2023 and 2022.