XML 30 R17.htm IDEA: XBRL DOCUMENT v3.22.0.1
Goodwill and Intangibles
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles GOODWILL AND INTANGIBLES
The homebuilding industry quickly rebounded from the immediate effects of the COVID-19 pandemic but continues to be affected by other pandemic-related factors that could have long-term impacts, such as reduced employment levels, inflation, rising interest rates, and reduced consumer spending and consumer confidence, any of which could decrease demand for homes and adversely affect our business. As such, we considered whether impairment indicators arose through the date of filing of this Form 10-K for our goodwill, long-lived assets and other intangible assets and concluded that no factors caused us to impair any asset group during the year ended December 31, 2021. While we ultimately concluded that our goodwill, long-lived assets and other intangibles assets were not impaired as of December 31, 2021, 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 combinations21,305 — 21,305 
Other(87)— (87)
December 31, 2020286,874 (70,004)216,870 
Business combinations105,617 — 105,617 
Other30 — 30 
December 31, 2021$392,521 $(70,004)$322,517 

Other changes included in the above table primarily include minor adjustments for the allocation of certain acquisitions still under measurement for the years ended December 31, 2021 and 2020. For additional information regarding changes to goodwill resulting from acquisitions, see Note 17, Business Combinations.
At October 1, 2021, our measurement date, we tested goodwill for impairment by performing a one-step qualitative assessment in conformity with generally accepted accounting principles and determined that no impairment of goodwill was required. As such, no impairment of goodwill was recognized for the year ended December 31, 2021. In addition, no impairment of goodwill was recognized for the years ended December 31, 2020 or 2019. 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 December 31,
20212020
Gross
Carrying
Amount		Accumulated
Amortization		Net
Book
Value		Gross
Carrying
Amount		Accumulated
Amortization		Net
Book
Value
Amortized intangibles:
Customer relationships$292,113 $113,849 $178,264 $197,641 $89,137 $108,504 
Covenants not-to-compete27,717 16,471 11,246 20,309 13,436 6,873 
Trademarks and tradenames103,007 32,623 70,384 79,657 27,245 52,412 
Backlog23,724 19,197 4,527 18,847 15,243 3,604 
$446,561 $182,140 $264,421 $316,454 $145,061 $171,393 

There was no intangible asset impairment loss for the years ended December 31, 2021, 2020 and 2019.
The gross carrying amount of intangibles increased approximately $130.1 million and $46.4 million during the years ended December 31, 2021 and 2020, respectively. Intangibles associated with business combinations accounted for approximately $130.0 million and $46.2 million of the increases during the years ended December 31, 2021 and 2020, respectively. For more information, see Note 17, Business Combinations. Amortization expense on intangible assets totaled approximately $37.1 million, $28.5 million, and $24.5 million during the years ended December 31, 2021, 2020 and 2019, respectively. Remaining estimated aggregate annual amortization expense is as follows (in thousands):

2022$41,780 
202337,458 
202433,762 
202527,440 
202623,489 
Thereafter100,492