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Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2020

NOTE 7 – GOODWILL AND OTHER INTANGIBLES

Goodwill:

Goodwill is reviewed for impairment annually during the fourth quarter, or more frequently if events or changes in circumstances indicate that impairment may exist. Goodwill is not amortizable for financial statement purposes. The Company did not record any goodwill impairment during the years ended December 31, 2020 or 2019.

The following table identifies the changes in goodwill and certain acquisition intangibles, which were included in “Goodwill” on the accompanying Consolidated Balance Sheets for the years ended December 31, 2020 and 2019 (in thousands):


	2020		2019
Goodwill, balance at January 1,	$	936,814	$	807,260
Change in goodwill related to small acquisitions		109		1,464
Foreign currency translation		(5,465)		4,130
Provisional goodwill and intangibles related to Mayasa acquisition		—		123,960
Final purchase price allocation of intangibles related to Mayasa acquisition		(50,428)		—
Goodwill, balance at December 31,	$	881,030	$	936,814

For the year ended December 31, 2019, goodwill included $128.1 million of goodwill and intangible assets, as well as foreign currency translation, from the preliminary purchase price allocation related to the acquisition of Mayasa. This amount was provisional, and during the year ended December 31, 2020, as result of the final purchase price allocation of the Mayasa acquisition, $61.5 million of intangible assets and $73.4 million of residual goodwill was recorded as of the acquisition date. See Note 2 for further information concerning the Company’s business combination.

Intangibles other than goodwill:

The following table identifies the components of the Company’s intangible assets, inclusive of foreign currency translation adjustments, which were included in “Other assets, net” on the accompanying Consolidated Balance Sheets for the years ended December 31, 2020 and 2019 (in thousands):


	December 31, 2020						December 31, 2019
	Cost of		Accumulated		Net		Cost of		Accumulated		Net
	Intangibles		Amortization		Intangibles		Intangibles		Amortization		Intangibles
Finite-lived intangible assets:
Trade names ⁽¹⁾	$	8,363	$	(1,905)	$	6,458	$	—	$	—	$	—
Non-compete agreements ⁽²⁾		7,183		(2,713)		4,470		2,717		(928)		1,789
Other intangible assets ⁽³⁾		12,200		(2,242)		9,958		—		—		—
Total finite-lived intangible assets		27,746		(6,860)		20,886		2,717		(928)		1,789

Indefinite-lived intangible assets:
Trade names		35,420		—		35,420		—		—		—

Total intangible assets	$	63,166	$	(6,860)	$	56,306	$	2,717	$	(928)	$	1,789

⁽¹⁾	Weighted-average remaining useful life of approximately 4.3 years as of December 31, 2020.

⁽²⁾	Weighted-average remaining useful life of approximately 3.6 years as of December 31, 2020.

⁽³⁾	Includes internally-developed software and customer relationships and has an estimated weighted-average remaining useful life of approximately 7.3 years as of December 31, 2020.

During the year ended December 31, 2020, the Company recorded finite-lived and indefinite-lived intangible assets, related to trade names from the Mayasa acquisition, in the amounts of $8.5 million and $36.0 million, respectively. During the years ended December 31, 2020 and 2019, the Company recorded non-compete agreement assets in conjunction with small acquisitions, including the acquisition of Mayasa, in the amounts of $4.7 million and less than $0.1 million, respectively. During the year ended December 31, 2020, the Company recorded other finite-lived intangible assets, related to internally-developed software and customer relationships from the Mayasa acquisition, in the amount of $12.4 million.

In prior years, the Company recorded favorable lease assets and unfavorable lease liabilities. These favorable lease assets represented the values of operating leases acquired with favorable terms and these unfavorable lease liabilities represented the values of operating leases acquired with unfavorable terms. With the adoption of Accounting Standard Codification 842 – Leases during the year ended December 31, 2019, the Company’s favorable lease assets and unfavorable lease liabilities, from a previous acquisition, were incorporated into the value of the right-of-use asset. For the years ended December 31, 2020, 2019 and 2018, the Company recorded aggregate amortization expense related to its intangible assets in the amounts of $5.3 million, $0.3 million and $1.4 million, respectively. For the year ended December 31, 2018, the Company recognized an amortized benefit of $0.9 million related to these unfavorable operating leases.

The following table identifies the estimated amortization expense of the Company’s intangibles for each of the next five years as of December 31, 2020 (in thousands):


	December 31, 2020
	Amortization Expense
2021	$	5,602
2022		5,347
2023		2,714
2024		1,397
2025		1,391
Total	$	16,451