Annual report [Section 13 and 15(d), not S-K Item 405]

Goodwill and Intangible Assets, Net

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Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill, Net
Our annual goodwill impairment review is performed during the fourth quarter each year-end using a quantitative approach. We tested goodwill for impairment at the reporting unit level utilizing the income approach which included a discounted cash flow method with a market approach, and we determined that there was no goodwill impairment for the year ended December 31, 2024. All reporting units with goodwill had estimated fair values that exceeded their carrying values by at least 49% as of December 31, 2024.
During our assessment during the fourth quarter ended December 31, 2023, one reporting unit had a fair value that was 2% less than the carrying value and we recorded a $1,644 goodwill impairment, which was $2,222 after taking into account the effect of
deferred income taxes. The impairment was primarily driven by a decline in projected cash flows, including revenues and profitability. The impairment charges are included in the asset impairments within the consolidated statements of income for the year ended December 31, 2023. All other reporting units with goodwill had estimated fair values that exceeded their carrying values by at least 16% as of December 31, 2023. There was no goodwill impairment for the year ended December 31, 2022.
The changes in the goodwill balances by reportable segment are as follows:
North America Regions U.S. Federal Europe Other Total
Carrying Value of Goodwill
Balance, December 31, 2022 $ 42,829  $ 3,981  $ 5,932  $ 17,891  $ 70,633 
Goodwill acquired during the year —  —  6,855  —  6,855 
Remeasurement adjustments —  —  (165) —  (165)
Impairment charges, net of tax (2,222) —  —  —  (2,222)
Foreign currency translation 73  —  413  —  486 
Balance, December 31, 2023 40,680  3,981  13,035  17,891  75,587 
Fair value allocation for change in reportable segments (1,474) —  —  1,474  — 
Goodwill disposed of through sale of business (1)
—  —  —  (8,529) (8,529)
Foreign currency translation (257) —  (496) —  (753)
Balance, December 31, 2024 $ 38,949  $ 3,981  $ 12,539  $ 10,836  $ 66,305 
(1) See Note 4. Business Acquisitions and Divestitures for additional information.
Accumulated Goodwill Impairment
Balance, December 31, 2023 $ (2,222) $ —  $ (1,016) $ —  $ (3,238)
Balance, December 31, 2024 $ (2,222) $ —  $ (1,016) $ —  $ (3,238)
Intangible Assets, Net
Definite-lived intangible assets, net consisted of the following:
As of December 31,
2024 2023
Gross carrying amount
Customer contracts $ 6,898  $ 8,859 
Customer relationships 17,572  21,182 
Non-compete agreements 2,535  3,013 
Technology 1,754  2,723 
Tradenames 927  1,370 
Subsurface land easements 4,274  — 
Total gross carrying amount 33,960  37,147 
Accumulated Amortization
Customer contracts 6,898  8,859 
Customer relationships 13,318  14,979 
Non-compete agreements 2,535  3,013 
Technology 1,753  2,723 
Tradenames 642  765 
Total accumulated amortization 25,146  30,339 
Intangible assets, net $ 8,814  $ 6,808 
Customer contracts are amortized ratably over the period of the acquired customer contracts ranging in periods from approximately one to eight years. All other intangible assets are amortized over periods ranging from approximately four to twenty years, as defined by the nature of the respective intangible asset.
Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. We annually assess whether a change in the useful life is necessary, or more frequently if events or circumstances warrant. During the year ended December 31, 2024, we included purchased subsurface land easements in intangible assets, which shall be amortized over the twenty-year life of the pipelines. No other changes to useful lives were made during the years ended December 31, 2024, 2023, and 2022.
The table below sets forth amortization expense:
Year Ended December 31,
Location 2024 2023 2022
Customer contracts Cost of revenues $ —  $ —  $ 551 
Customer relationships Selling, general and administrative expenses 1,833  2,141  1,303 
Technology Selling, general and administrative expenses —  —  1 
Tradenames Selling, general and administrative expenses 296  225  3 
Subsurface land easements Selling, general and administrative expenses 5  —  — 
Total amortization expense $ 2,134  $ 2,366  $ 1,858 
Amortization expense for our definite-lived intangible assets for the next five years to be included in selling, general, and administrative expenses is as follows:
Estimated Amortization Expense
2025 $ 2,238 
2026 1,895 
2027 821 
2028 369 
2029 214 
Thereafter 3,277 
Total $ 8,814