Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and GoodwillAs a result of the acquisitions of Smith Transport and CFI there was a $85.0 million increase in the gross intangible assets made up of $53.4 million finite lived intangible assets and $31.6 million of indefinite lived intangible assets during the twelve months ended December 31, 2022. The increase in gross indefinite lived intangible assets is associated with the Smith Transport and CFI trade names, while the intangible assets for customer relationships and covenants not to compete have finite lives. The majority of change in gross finite lived intangible assets is the $52.8 million of customer relationship intangible assets, including $21.2 million from Smith Transport and $31.6 million from CFI.

Amortization expense of $3.7 million, $2.4 million and $2.4 million for the twelve months ended December 31, 2022, 2021 and 2020, respectively, was included in depreciation and amortization in the consolidated statements of comprehensive income.

Intangible assets subject to amortization consisted of the following at December 31, 2022 and 2021:

	2022
	Amortization period (years)	Gross Amount		Accumulated Amortization		Net finite intangible assets
		(in thousands)
Customer relationships	15-20	$	75,836	$	8,441	$	67,395
Tradename	0.5-10	12,900		9,700		3,200
Covenants not to compete	1-10	5,839		4,357		1,482
		$	94,575	$	22,498	$	72,077

	2021
	Amortization period (years)	Gross Amount		Accumulated Amortization		Net finite intangible assets
		(in thousands)
Customer relationships	15-20	$	23,000	$	5,842	$	17,158
Tradename	0.5-10	12,900		9,220		3,680
Covenants not to compete	1-10	5,300		3,783		1,517
		$	41,200	$	18,845	$	22,355

Change in carrying amount of goodwill:

Goodwill	(in thousands)
Balance at December 31, 2021	$	168,295
Acquisition May 31, 2022	40,297
Acquisition August 31, 2022	112,083
Balance at December 31, 2022	$	320,675

Future amortization expense for intangible assets is estimated at $5.8 million for 2023, $5.5 million for 2024, $5.5 million for 2025, $5.5 million for 2026, and $5.5 million for 2027.