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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block] Goodwill and Other Intangible Assets
The table below presents changes in the carrying amount of goodwill and our accumulated impairment losses (in thousands):
Goodwill (gross) at December 31, 2021
$701,753 
Acquired goodwill5,500 
Foreign currency translation and other adjustments(1,266)
Goodwill (gross) at December 31, 2022
705,987 
Accumulated impairment losses at December 31, 2021
(13,389)
Goodwill impairment(605)
Accumulated impairment losses at December 31, 2022
(13,994)
Goodwill (net) at December 31, 2022
$691,993 
Goodwill (gross) at December 31, 2022
$705,987 
Acquired goodwill8,137 
Foreign currency translation and other adjustments498 
Goodwill (gross) at December 31, 2023
714,622 
Accumulated impairment losses at December 31, 2022
(13,994)
Goodwill impairment(550)
Accumulated impairment losses at December 31, 2023
(14,544)
Goodwill (net) at December 31, 2023
$700,078 

The determination of our reporting units’ goodwill and intangibles fair values includes numerous assumptions that are subject to various risks and uncertainties. The principal assumptions, all of which are considered Level 3 inputs, used in our cash flow analyses consisted of changes in market conditions, forecasted future operating results (including sales growth rates and operating margins) and discount rates (including our weighted-average cost of capital).
In September 2023, we recorded goodwill impairment of $0.6 million, primarily related to one of our Horizon reporting units in Texas that we previously identified as being most at risk of goodwill impairment. We had been monitoring this location’s results, which came in below expectations at the end of the 2023 season. We performed an interim goodwill impairment analysis, which included a discounted cash flow analysis, and determined that the estimated fair value of the reporting unit no longer exceeded its carrying value.

In October 2023, we performed our annual goodwill impairment test and did not record any additional goodwill impairment at the reporting unit level. As of October 1, 2023, we had 250 reporting units with allocated goodwill balances.   Our most significant goodwill balance of $403.5 million was related to our Porpoise Pool & Patio reporting unit and the next largest goodwill balance for a reporting unit was $12.1 million. The average goodwill balance per reporting unit was $2.8 million.

In October 2022, we performed our annual goodwill impairment test and recorded goodwill impairment of $0.6 million related to the closure of a Horizon reporting unit in that period.

We record goodwill and intangibles impairment in Selling and administrative expenses on our Consolidated Statements of Income.

Other intangible assets consisted of the following (in thousands):
 December 31,Weighted Average Useful Life
 20232022
Intangibles GrossAccumulated AmortizationIntangibles NetIntangibles GrossAccumulated AmortizationIntangibles Net
Horizon tradename$8,400 $— $8,400 $8,400 $— $8,400 Indefinite
Pinch A Penny brand name169,000 — 169,000 169,000 — 169,000 Indefinite
National Pool Tile (NPT) tradename1,500 (1,187)313 1,500 (1,112)388 20
Non-compete agreements6,206 (3,258)2,948 6,022 (2,533)3,489 4.64
Customer relationships109,000 (11,125)97,875 109,000 (5,677)103,323 20
Franchise agreements22,000 (2,254)19,746 22,000 (1,150)20,850 20
Total other intangibles$316,106 $(17,824)$298,282 $315,922 $(10,472)$305,450 

The Horizon tradename and Pinch A Penny brand name each have an indefinite useful life and are not subject to amortization.  We evaluate the useful life of these intangible assets and test for impairment annually.  The NPT tradename, our non-compete agreements, customer relationships and franchise agreements have finite useful lives, and we amortize the estimated fair value of these agreements using the straight-line method over their respective useful lives. We have not identified any indicators of impairment related to these assets. The useful lives for our non-compete agreements are based on their contractual terms.

Other intangible amortization expense was $7.8 million in 2023, $7.8 million in 2022 and $1.3 million in 2021.

The table below presents estimated amortization expense for other intangible assets for the next five years (in thousands):
2024$7,794 
20257,676 
20267,143 
20276,790 
20286,619