Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill were as follows:


	Balance at January 1, 2022		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at December 31, 2022
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736

Construction materials and contracting	276,426		238		(2,124)		274,540
Construction services	143,224		—		—		143,224
Total	$	765,386	$	238	$	(2,124)	$	763,500


	Balance at January 1, 2021		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at December 31, 2021
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736

Construction materials and contracting	226,003		50,640		(217)		276,426
Construction services	143,224		—		—		143,224
Total	$	714,963	$	50,640	$	(217)	$	765,386

Other amortizable intangible assets at December 31 were as follows:


	2022		2021
	(In thousands)
Customer relationships	$	28,990	$	29,740
Less accumulated amortization	13,724		10,650
	15,266		19,090
Noncompete agreements	4,591		4,591
Less accumulated amortization	3,529		2,856
	1,062		1,735
Other	5,280		12,601
Less accumulated amortization	4,076		10,848
	1,204		1,753
Total	$	17,532	$	22,578

The previous tables include goodwill and intangible assets associated with the business combinations completed during 2022 and 2021. For more information related to these business combinations, see Note 4.

Amortization expense for amortizable intangible assets for the years ended December 31, 2022, 2021 and 2020, was $5.0 million, $5.1 million and $9.0 million, respectively. The amounts of estimated amortization expense for identifiable intangible assets as of December 31, 2022, were:


	2023		2024		2025		2026		2027		Thereafter
	(In thousands)
Amortization expense	$	4,591	$	4,249	$	2,200	$	1,782	$	1,759	$	2,951

At October 31, 2022, the fair value substantially exceeded the carrying value at the Company's reporting units with goodwill, with the exception of the natural gas distribution reporting unit. The Company's annual impairment testing indicated the natural gas distribution reporting units fair value is not substantially in excess of its carrying value ("cushion"). Based on the Company's assessment, the estimated fair value of the natural gas distribution reporting unit exceeded its carrying value, which includes $345.7 million of goodwill, by approximately 8 percent as of October 31, 2022. The decrease in the natural gas distribution reporting unit's cushion from the prior year was primarily attributable to the risk adjusted cost of capital increasing from 5.0 percent in 2021 to 6.4 percent 2022, which directly correlates with the treasury rates at the date of the test. The natural gas distribution reporting unit is at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement model change.