GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

NOTE 5 – GOODWILL AND INTANGIBLE ASSETS

Goodwill represents the excess of the purchase price of all acquisitions over the estimated fair value of the net assets acquired. The Company performs an impairment test of goodwill annually as of October 1 or when impairment indicators arise.

The Company did not identify any goodwill impairment for the year ended December 31, 2020.  For 2019, the Company recognized $118.8 million of impairment, of which $111.0 million was not deductible for tax purposes.  For 2018, the Company recognized goodwill impairment of $11.1 million.

The summary of changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows (in millions):

	Flatbed		Specialized		Total
Goodwill balance at January 1, 2019	$	101.5		156.9	$	258.4
Impairment		(42.2)		(76.6)		(118.8)
Adjustments to previously recorded goodwill, net		—		(0.3)		(0.3)
Foreign currency translation adjustment		—		0.6		0.6
Goodwill balance at December 31, 2019		59.3		80.6		139.9
Foreign currency translation adjustment		—		0.2		0.2
Goodwill balance at December 31, 2020	$	59.3	$	80.8	$	140.1

During 2020, the Company recorded impairment charges to intangible assets of $8.2 million for the trade names category of intangible assets as a result of the planned divestiture of Aveda and the reorganization and merger of two of the Company’s operating companies. During 2019, the Company recorded an impairment charge to intangible assets of $85.6 million for the non-competition agreements, customer relationships and trade names categories of intangible assets. In 2018, the Company recorded an impairment charge of $2.8 million related to the trade names category of intangible assets as a result of the reorganization and merger of two of the Company’s operating companies

Intangible assets consisted of the following at December 31, 2020 and 2019 (in millions):

	As of December 31, 2020						As of December 31, 2019
	Intangible		Accumulated		Intangible		Intangible		Accumulated		Intangible
	Assets		Amortization		Assets, net		Assets		Amortization		Assets, net
Non-competition agreements	$	21.7	$	(19.7)	$	2.0	$	21.7	$	(18.4)	$	3.3
Customer relationships		88.9		(48.1)		40.8		88.9		(42.2)		46.7
Trade names		50.9		—		50.9		59.1		—		59.1
Foreign currency translation adjustment		0.1		—		0.1		—		—		—
Total intangible assets	$	161.6	$	(67.8)	$	93.8	$	169.7	$	(60.6)	$	109.1

As of December 31, 2020, non-competition agreements and customer relationships had weighted average remaining useful lives of 1.9 and 9.2 years, respectively.

Amortization expense for intangible assets with definite lives was $7.2 million, $14.3 million and $16.7 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Future estimated amortization expense is as follows (in millions):

	Non-competition		Customer
Year ending December 31,	Agreements		Relationships
2021	$	1.0	$	5.9
2022		0.9		5.9
2023		0.1		5.9
2024		—		4.1
2025		—		3.1
Thereafter		—		15.9
Total	$	2.0	$	40.8