GOODWILL AND INTANGIBLE ASSETS, NET |
7. GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill and intangible assets were recorded in relation to the acquisition of TC on October 1, 2014.
The following tables summarize the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands):
|
|
September 30, 2017 |
|
Intangible assets subject to amortization
(Definite-lived)
|
|
Gross |
|
|
Accumulated
Amortization
|
|
|
Net |
|
Customer relationships |
|
$ |
16,852 |
|
|
$ |
(3,370 |
) |
|
$ |
13,482 |
|
Non-compete agreements |
|
|
94 |
|
|
|
(57 |
) |
|
|
37 |
|
Licenses and permits |
|
|
1,471 |
|
|
|
(364 |
) |
|
|
1,107 |
|
Developed technology |
|
|
6,131 |
|
|
|
(1,839 |
) |
|
|
4,292 |
|
|
|
|
24,548 |
|
|
|
(5,630 |
) |
|
|
18,918 |
|
Intangible assets not subject to amortization
(Indefinite-lived)
|
|
|
|
|
|
|
|
|
|
|
|
|
Emissions Allowance |
|
|
197 |
|
|
|
- |
|
|
|
197 |
|
Trade name |
|
|
2,158 |
|
|
|
- |
|
|
|
2,158 |
|
Total |
|
$ |
26,903 |
|
|
$ |
(5,630 |
) |
|
$ |
21,273 |
|
|
|
December 31, 2016 |
|
Intangible assets subject to amortization
(Definite-lived)
|
|
Gross |
|
|
Accumulated
Amortization
|
|
|
Net |
|
Customer relationships |
|
$ |
16,852 |
|
|
$ |
(2,527 |
) |
|
$ |
14,325 |
|
Non-compete agreements |
|
|
94 |
|
|
|
(43 |
) |
|
|
51 |
|
Licenses and permits |
|
|
1,471 |
|
|
|
(285 |
) |
|
|
1,186 |
|
Developed technology |
|
|
6,131 |
|
|
|
(1,379 |
) |
|
|
4,752 |
|
|
|
|
24,548 |
|
|
|
(4,234 |
) |
|
|
20,314 |
|
Intangible assets not subject to amortization
(Indefinite-lived)
|
|
|
|
|
|
|
|
|
|
|
|
|
Emissions Allowance |
|
|
197 |
|
|
|
- |
|
|
|
197 |
|
Trade name |
|
|
2,158 |
|
|
|
- |
|
|
|
2,158 |
|
Total |
|
$ |
26,903 |
|
|
$ |
(4,234 |
) |
|
$ |
22,669 |
|
Amortization expense for intangible assets included in cost of sales for the three months ended September 30, 2017, and 2016, was approximately $466,000 and $471,000 and for the nine months ended September 30, 2017 and 2016, was approximately $1,396,000 and $1,415,000, respectively.
Based on identified intangible assets that are subject to amortization as of September 30, 2017, we expect future amortization expenses for each period to be as follows (in thousands):
|
|
Remainder of
2017
|
|
|
2018
|
|
|
2019
|
|
|
2020
|
|
|
2021 |
|
|
Thereafter
|
|
Customer relationships |
|
$ |
282 |
|
|
$ |
1,123 |
|
|
$ |
1,123 |
|
|
$ |
1,123 |
|
|
|
1,123 |
|
|
$ |
8,710 |
|
Non-compete agreements |
|
|
5 |
|
|
|
19 |
|
|
|
12 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Licenses and permits |
|
|
26 |
|
|
|
106 |
|
|
|
106 |
|
|
|
106 |
|
|
|
106 |
|
|
|
656 |
|
Developed technology |
|
|
153 |
|
|
|
613 |
|
|
|
613 |
|
|
|
613 |
|
|
|
613 |
|
|
|
1,687 |
|
Total future amortization expense |
|
$ |
466 |
|
|
$ |
1,861 |
|
|
$ |
1,854 |
|
|
$ |
1,842 |
|
|
$ |
1,842 |
|
|
$ |
11,053 |
|
|