Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Intangible Assets, Net (Including Goodwill) [Abstract]

Goodwill and Other Intangible Assets

Note 5 — Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets of acquired businesses. Goodwill is not amortized, but is evaluated for impairment on an annual basis, or more frequently if impairment indicators arise. To date, the Company has not recognized an impairment of its goodwill.

The following table sets forth the amounts of goodwill by reportable segment, as described in Note 14 — Segment Information, as of December 31, 2021 and 2020:

	December 31, 2020		Acquisitions1		December 31, 2021
	(in thousands)
Housekeeping	$	42,377	$	—	$	42,377
Dietary	8,707		23,671		32,378
Total Goodwill	$	51,084	$	23,671	$	74,755

1.In the second quarter of 2021, the Company acquired a manufacturer of prepackaged meals for $6.0 million cash and $10.5 million of deferred variable consideration and recorded under “Other long-term liabilities” in the Consolidated Balance Sheet. The Company acquired primarily intangible assets and goodwill as part of the transaction. As of December 31, 2021, the Company has finalized its acquisition accounting for this transaction. In the fourth quarter of 2021, the Company acquired a regional dining operator for $18.0 million cash consideration. The Company acquired primarily intangible assets and goodwill as part of the acquisition. As of December 31, 2021, the Company has not finalized its acquisition accounting for this transaction.

Intangible Assets

The Company’s other intangible assets were obtained through acquisitions and are recorded at their fair values at the date of acquisition. The following table sets forth the amounts of other intangible assets as of December 31, 2021 and 2020:

	December 31, 2021						December 31, 2020
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
	(in thousands)
Customer relationships	$	45,634	$	27,704	$	17,930	$	41,653	$	23,466	$	18,187
Trade names	1,731		55		1,676		—		—		—
Patents	1,086		95		991		—		—		—
Non-compete agreements	233		25		208		—		—		—
Total other intangible assets	$	48,684	$	27,879	$	20,805	$	41,653	$	23,466	$	18,187

During the year ended December 31, 2021, the Company acquired customer relationships, trade names, patents, and non-compete agreements with values of $4.0 million, $1.7 million, $1.1 million and $0.2 million, respectively. No acquisitions occurred during the year ended December 31, 2020. Intangible assets with determinable useful lives are amortized on a straight-line basis over their estimated useful lives. The weighted-average amortization period of customer relationships, trade names, patents, and non-compete agreements are approximately 10 years, 13 years, 8 years, and 4 years, respectively.

The following table sets forth the estimated amortization expense for intangibles subject to amortization for 2022, the following four fiscal years and thereafter:

Period/Year	Total Amortization Expense
	(in thousands)
2022	$	4,851
2023	$	3,813
2024	$	2,679
2025	$	2,679
2026	$	2,660
Thereafter	$	4,123

Amortization expense for the years ended December 31, 2021, 2020, and 2019 was $4.4 million, $4.2 million and $4.2 million, respectively.