Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

During the years ended December 31, 2021, 2020, and 2019, the change in the net carrying amount of goodwill was as follows (in thousands):


Balance at January 1, 2019	$	153,397
Acquisition of U.S. Oil (1)	42,522

Balance at December 31, 2019	195,919

Impairment expense	(67,922)
Balance at December 31, 2020	127,997
Reclassified to assets held for sale	(735)

Balance at December 31, 2021	$	127,262

________________________________________________________

(1)Please read Note 4—Acquisitions for further discussion.

The gross carrying value of goodwill was $160.4 million as of January 1, 2019 and $202.9 million as of December 31, 2019, 2020, and 2021. As of January 1 and December 31, 2019, we had accumulated impairment charges of $7.0 million, and as of December 31, 2020 and 2021, we had accumulated impairment charges of $74.9 million and $75.6 million, respectively.

At March 31, 2020, we performed a quantitative goodwill impairment test of all of our reporting units due to (i) the global economic impact of the COVID-19 pandemic and (ii) a steep decline in current and forecasted prices and demand for crude oil and refined products. As part of our quantitative impairment test, we compared the carrying value of the net assets of the reporting unit to the estimated fair value of the reporting unit. In assessing the fair value of the reporting units, we primarily utilized a market approach based on observable multiples for comparable companies within our industry. Our refining reporting units in Hawaii and Washington were fully impaired and the goodwill associated with our retail reporting unit in Washington and Idaho was partially impaired, resulting in a charge of $67.9 million in our consolidated statement of operations for the year ended December 31, 2020. The goodwill impairment expense was allocated to the Refining segment ($38.1 million) and to the Retail segment ($29.8 million).

Intangible assets consisted of the following (in thousands):



	December 31,
	2021		2020

Intangible assets:



Trade names and trademarks	$	6,267	$	6,267
Customer relationships	32,064		32,064
Other	261		261
Total intangible assets	38,592		38,592
Accumulated amortization:



Trade name and trademarks	(5,297)		(5,210)
Customer relationships	(17,061)		(14,490)
Other	—		—
Total accumulated amortization	(22,358)		(19,700)
Net:



Trade name and trademarks	970		1,057
Customer relationships	15,003		17,574
Other	261		261
Total intangible assets, net	$	16,234	$	18,892

Amortization expense was approximately $2.7 million for each of the years ended December 31, 2021, 2020, and 2019. Our intangible assets related to customer relationships and trade names have an average useful life of 13.5 years. Expected amortization expense for each of the next five years and thereafter is as follows (in thousands):


Year Ended	Amount
2022	$	2,658
2023	2,658
2024	1,400
2025	979
2026	979
Thereafter	7,560
	$	16,234