Goodwill and Intangibles

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 - GOODWILL AND INTANGIBLES

We anticipate that the

COVID-19

pandemic could continue to have an impact on the homebuilding industry in general, as it could result in further business interruptions (government-mandated or otherwise) and could affect, among other factors, employment levels, consumer spending and consumer confidence, which could decrease demand for homes, adversely affecting our business. As such, we considered whether impairment indicators arose through the date of filing of this Quarterly Report on Form

10-Q

for our goodwill, long-lived assets and other intangible assets and concluded that no such factors exist. While we ultimately concluded that our goodwill, long-lived assets and other intangibles assets were not impaired as of September 30, 2020, we will continue to assess impairment indicators related to the impact of the

COVID-19

pandemic on our business.

Goodwill

The change in carrying amount of goodwill was as follows (in thousands):


	Goodwill (Gross)			Accumulated Impairment Losses			Goodwill (Net)
January 1, 2020	$	265,656		$	(70,004	)	$	195,652
Business Combinations		11,250			—			11,250
Other		(120	)		—			(120	)

September 30, 2020	$	276,786		$	(70,004	)	$	206,782

Other changes included in the above table include minor adjustments for the

purchase price

allocation of certain acquisitions still under measurement. For additional information regarding changes to goodwill resulting from acquisitions, see Note 16, Business Combinations.

We test goodwill for impairment annually during the fourth quarter of our fiscal year or earlier if there is an impairment indicator. Accumulated impairment losses included within the above table were incurred over multiple periods, with the latest impairment charge being recorded during the year ended December 31, 2010.

Intangibles, net

The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands):


	As of September 30,						As of December 31,
	2020						2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Book		Carrying		Accumulated		Book
	Amount		Amortization		Value		Amount		Amortization		Value
Amortized intangibles:
Customer relationships	$	184,562	$	83,719	$	100,843	$	169,334	$	69,388	$	99,946
Covenants not-to-compete		18,944		12,761		6,183		16,959		10,617		6,342
Trademarks and tradenames		73,543		26,042		47,501		69,718		22,609		47,109
Backlog		15,256		14,385		871		14,080		13,915		165

	$	292,305	$	136,907	$	155,398	$	270,091	$	116,529	$	153,562

The gross carrying amount of intangibles increased approximately $22.2 million during the nine months ended September 30, 2020 primarily due to business combinations. For more information, see Note 16, Business Combinations. Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended):


Remainder of 2020	$	7,069
2021		27,621
2022		26,037
2023		23,126
2024		19,611
Thereafter		51,934