Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.22.2.2
GOODWILL AND OTHER INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
 8. GOODWILL AND OTHER INTANGIBLE ASSETS
Carrying amount as of Goodwill Other intangible assets
Cost
Balance at December 31, 2021 (1)
$ 45,828  $ 197,502 
Additions from acquisitions 35,734  25,640 
Impairment —  (37,600)
Balance at September 30, 2022 $ 81,562  $ 185,542 
Accumulated amortization
January 1, 2022 $ —  $ (5,036)
 Amortization —  (2,283)
Balance at September 30, 2022 $ —  $ (7,319)
Net book value
Balance at December 31, 2021 (1)
$ 45,828  $ 192,466 
Balance at September 30, 2022 $ 81,562  $ 178,223 
(1)For additional information, see Correction of Errors in Previously Issued Financial Statements in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies.
Indefinite-lived asset impairment
In September 2022, the Company determined that the lower than expected operating results of its Massachusetts operations primarily driven by significant price compression in the state was an indicator of impairment. The Company utilized a combination of the income approach (discounted cash flow method) and market approach (a combination of the guideline transactions method and guideline company method) for its impairment test, and as a result, recorded a business licenses impairment charge of $37,600 and determined goodwill was not impaired. The key inputs and assumptions used in the fair valuation of Massachusetts include: (i) a five-year cash flow forecast, which is based on the Company’s actual operating results and its forecast; (ii) a perpetual growth rate of 3%; and (iii) an estimated weighted average cost of capital of 19.5% in relation to goodwill, and an estimated discount rate of 20.5% in relation to business licenses.