Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets

Goodwill and Intangible Assets

2. Goodwill and Intangible Assets

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. As of the first day of the fourth quarters of 2024, 2023, and 2022, the company’s annual impairment testing did not result in any additional impairment of goodwill of companies acquired.

Goodwill of companies acquired, allocated to the company’s reportable segments, is as follows:

	Global
(thousands)	Components		Global ECS		Total
Balance as of December 31, 2022 (a)	$	873,003	$	1,154,623	$	2,027,626
Foreign currency translation adjustment		2,191		20,609		22,800
Balance as of December 31, 2023 (a)	$	875,194	$	1,175,232	$	2,050,426
Acquisitions		35,870		—		35,870
Foreign currency translation adjustment		(8,619)		(22,382)		(31,001)
Balance as of December 31, 2024 (a)	$	902,445	$	1,152,850	$	2,055,295

(a) The total carrying value of goodwill as of December 31, 2024, 2023, and 2022 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components reportable segment and $301.9 million was recorded in the global ECS reportable segment.

Intangible assets, net, are comprised of the following as of December 31, 2024:

	Gross
	Carrying		Accumulated
(thousands)	Amount		Amortization		Net
Customer relationships	$	215,366	$	(133,927)	$	81,439
Amortizable trade name		74,001		(58,734)		15,267
	$	289,367	$	(192,661)	$	96,706

Intangible assets, net, are comprised of the following as of December 31, 2023:

	Gross
	Carrying		Accumulated
(thousands)	Amount		Amortization		Net
Customer relationships	$	258,337	$	(156,141)	$	102,196
Amortizable trade name		73,811		(48,567)		25,244
	$	332,148	$	(204,708)	$	127,440

Amortization expense related to identifiable intangible assets was $29.5 million, $31.2 million, and $34.7 million for the years ended December 31, 2024, 2023, and 2022, respectively. Amortization expense for each of the years 2025 through 2029 is estimated to be approximately $20.2 million, $19.5 million, $18.9 million, $11.2 million, and $7.3 million, respectively.