BRP Group Inc
For the period ended Dec 31, 2023. Filed Feb 28, 2024.
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FY2023 · Filed Feb 28, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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. Intangible Assets, Net and Goodwill
- Intangible Assets, Net and Goodwill
Intangible assets consist of the following:
| December 31, 2023 | December 31, 2022 | |||||
|---|---|---|---|---|---|---|
| (in thousands) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value |
| Acquired relationships(1) | $1,135,834 | $(186,487) | $949,347 | $1,153,031 | $(124,228) | $1,028,803 |
| Software | 99,733 | (46,543) | 53,190 | 81,392 | (30,790) | 50,602 |
| Trade names | 27,924 | (13,118) | 14,806 | 28,623 | (8,110) | 20,513 |
| Total intangible assets | $1,263,491 | $(246,148) | $1,017,343 | $1,263,046 | $(163,128) | $1,099,918 |
(1)Acquired relationships exclude $20.7 million of gross carrying value and $9.4 million of accumulated amortization classified as held for sale at December 31, 2023.
The Company had several asset acquisitions during each of the years ended December 31, 2023 and 2022, which resulted in the addition of acquired relationships of $3.5 million and $3.4 million, respectively, with estimated weighted-average useful lives of 15 years and 18.7 years, respectively. The Company also had several business combinations during the year ended December 31, 2022, which resulted in the addition of acquired relationships of $189.8 million, software of $29.5 million and trade names of $4.4 million with estimated weighted-average useful lives of 20 years,5 years and 4.9 years, respectively.
Amortization expense recorded for intangible assets was $92.7 million, $81.7 million and $48.7 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Future annual estimated amortization expense over the next five years for intangible assets is as follows (in thousands):
| For the Years Ending December 31, | Amortization |
|---|---|
| 2024 | $89,322 |
| 2025 | 89,503 |
| 2026 | 83,890 |
| 2027 | 73,616 |
| 2028 | 67,454 |
The changes in carrying value of goodwill by Operating Group are as follows:
| (in thousands) | Insurance Advisory Solutions | Underwriting, Capacity & Technology Solutions | Mainstreet Insurance Solutions | Total |
|---|---|---|---|---|
| Balance at December 31, 2021 | $901,127 | $264,018 | $63,596 | $1,228,741 |
| Goodwill of acquired businesses | — | 6,877 | 180,908 | 187,785 |
| Measurement period adjustments(1) | 5,018 | 516 | — | 5,534 |
| Balance at December 31, 2022 | 906,145 | 271,411 | 244,504 | 1,422,060 |
| Measurement period adjustments(2) | — | — | (211) | (211) |
| Goodwill classified as held for sale(3) | — | (9,480) | — | (9,480) |
| Balance at December 31, 2023 | $906,145 | $261,931 | $244,293 | $1,412,369 |
(1)Measurement period adjustments recorded during 2022 relating to businesses acquired in 2021 increased premiums, commissions and fees receivable by $3.8 million, increased current liabilities by $9.1 million, and increased consideration by $0.2 million.
(2) Measurement period adjustments recorded during 2023 relating to businesses acquired in 2022 decreased current liabilities by $0.2 million.
(3) Refer to Note 3 for additional information regarding goodwill classified as held for sale.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.