Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following table presents the changes in the carrying amount of goodwill for the three months ended March 31, 2023:

	General rentals		Specialty		Total
Balance at January 1, 2023 (1)	$	4,980	$	1,046	$	6,026
Goodwill related to acquisitions (2)	(309)		(11)		(320)
Foreign currency translation and other adjustments	—		2		2
Balance at March 31, 2023 (1)	$	4,671	$	1,037	$	5,708

 

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(1)The total carrying amount of goodwill for all periods in the table above is reflected net of $1.557 billion of accumulated impairment charges, which were primarily recorded in our general rentals segment.

(2)Includes goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period. The decrease in goodwill related to acquisitions above primarily reflects measurement period adjustments associated with the December 2022 acquisition of Ahern Rentals. For additional detail on the Ahern Rentals acquisition, see note 3 to our condensed consolidated financial statements.

Other intangible assets were comprised of the following at March 31, 2023 and December 31, 2022:  

	March 31, 2023
	Weighted-Average Remaining Amortization Period	Gross Carrying Amount			Accumulated Amortization			Net Amount
Non-compete agreements	4 years		$	266		$	38		$	228
Customer relationships	6 years		$	2,647		$	2,011		$	636
Trade names and associated trademarks	3 years		$	14		$	10		$	4

	December 31, 2022
	Weighted-Average Remaining Amortization Period	Gross Carrying Amount			Accumulated Amortization			Net Amount
Non-compete agreements	3 years		$	69		$	22		$	47
Customer relationships	5 years		$	2,349		$	1,949		$	400
Trade names and associated trademarks	3 years		$	14		$	9		$	5

Our other intangibles assets, net at March 31, 2023 include the assets set forth in the table below associated with the acquisition of Ahern Rentals that is discussed in note 3 to our condensed consolidated financial statements. No residual value has been assigned to these assets. The non-compete agreements are being amortized on a straight-line basis and the customer relationships are being amortized using the sum of the years' digits method, and we believe that such methods best reflect the estimated pattern in which the economic benefits will be consumed. The intangible asset values are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period.

	March 31, 2023
	Weighted-Average Remaining Amortization Period	Net Carrying Amount
Non-compete agreements	5 years	$	177
Customer relationships	9 years	243

Amortization expense for other intangible assets was $79 and $62 for the three months ended March 31, 2023 and 2022, respectively. The year-over-year increase primarily reflects the impact of the Ahern Rentals acquisition discussed above.

As of March 31, 2023, estimated amortization expense for other intangible assets for each of the next five years and thereafter is as follows:  

2023		$	199
2024	211
2025	172
2026	130
2027	85
Thereafter	71
Total		$	868