XML 26 R15.htm IDEA: XBRL DOCUMENT v3.22.1
Goodwill and Intangibles
 3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles 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, inflation, interest rates, 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 existed to cause us to test for goodwill impairment during the three months ended March 31, 2022. While we ultimately concluded that our goodwill, long-lived assets and other intangibles assets were not impaired as of March 31, 2022, we will continue to assess impairment indicators related to the impact of the COVID-19 pandemic on our business.
Goodwill
In the first quarter of 2022, we changed our reporting units to align with our change in operating and reportable segments. See Note 10, Information on Segments, for details about our change in segment structure. Effective January 1, 2022, our Installation reporting unit is comprised of our Installation operating and reportable segment, and our Other category is comprised of our Manufacturing and Distribution operating segments which are also reporting units. All three reporting units contain goodwill and were previously combined and recorded as a single operating and reportable segment as of December 31, 2021.
The change in carrying amount of goodwill was as follows (in thousands):
InstallationOtherConsolidated
Goodwill (gross) - January 1, 2022, after change in reporting units $331,782 $60,739 $392,521 
Business combinations2,830 — 2,830 
Goodwill (gross) - March 31, 2022334,612 60,739 395,351 
Accumulated impairment losses (70,004)— (70,004)
Goodwill (net) - March 31, 2022$264,608 $60,739 $325,347 
For additional information regarding changes to goodwill resulting from acquisitions, see Note 17, 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 and were all associated with the Installation segment, 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 March 31,As of December 31,
 20222021
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Book
Value		Gross
Carrying
Amount		Accumulated
Amortization		Net
Book
Value
Amortized intangibles:      
Customer relationships$295,239 $121,371 $173,868 $292,113 $113,849 $178,264 
Covenants not-to-compete28,091 17,357 10,734 27,717 16,471 11,246 
Trademarks and tradenames104,142 34,248 69,894 103,007 32,623 70,384 
Backlog23,725 20,261 3,464 23,724 19,197 4,527 
 $451,197 $193,237 $257,960 $446,561 $182,140 $264,421 
The gross carrying amount of intangibles increased approximately $4.6 million during the three months ended March 31, 2022 primarily due to business combinations. For more information, see Note 17, Business Combinations. Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended):
Remainder of 2022$31,315 
202338,042 
202434,122 
202527,800 
202623,842 
Thereafter102,839