Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS, NET

v3.19.2
GOODWILL AND INTANGIBLE ASSETS, NET
6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS, NET
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:
 
 
June 30, 2019
 
 
Gross
 
Accumulated
Amortization
 
Net
Intangible assets subject to amortization (Definite-lived)
 
(thousands of dollars)
Customer relationships
 
$
16,852

 
$
(5,336
)
 
$
11,516

Non-compete agreements
 
94

 
(90
)
 
4

Licenses and permits
 
1,471

 
(549
)
 
922

Developed technology
 
6,131

 
(2,912
)
 
3,219

 
 
24,548

 
(8,887
)
 
15,661

Intangible assets not subject to amortization (Indefinite-lived)
 
 
 
 
 
 
Emissions allowance
 
197

 

 
197

Trade name
 
2,158

 

 
2,158

Total
 
$
26,903

 
$
(8,887
)
 
$
18,016

 
 
December 31, 2018
 
 
Gross
 
Accumulated
Amortization
 
Net
Intangible assets subject to amortization (Definite-lived)
 
(thousands of dollars)
Customer relationships
 
$
16,852

 
$
(4,775
)
 
$
12,077

Non-compete agreements
 
94

 
(80
)
 
14

Licenses and permits
 
1,471

 
(495
)
 
976

Developed technology
 
6,131

 
(2,606
)
 
3,525

 
 
24,548

 
(7,956
)
 
16,592

Intangible assets not subject to amortization (Indefinite-lived)
 
 
 
 
 
 
Emissions allowance
 
197

 

 
197

Trade name
 
2,158

 

 
2,158

Total
 
$
26,903

 
$
(7,956
)
 
$
18,947



Amortization expense for intangible assets included in cost of sales for the three months ended June 30, 2019 and 2018, was approximately $0.5 million and $0.5 million, and for the six months ended June 30, 2019 and 2018, was approximately $0.9 million and $0.9 million, respectively.
Based on identified intangible assets that are subject to amortization as of June 30, 2019, we expect future amortization expenses for each period to be as follows:
 
 
Total

 
Remainder of 2019

 
2020

 
2021

 
2022

 
2023

 
2024

 
Thereafter

 
 
(thousands of dollars)
Customer relationships
 
$
11,516

 
$
562

 
$
1,123

 
$
1,123

 
1,123

 
1,123

 
1,123

 
$
5,339

Non-compete agreements
 
4

 
4

 

 

 

 

 

 

Licenses and permits
 
922

 
53

 
106

 
101

 
86

 
86

 
86

 
404

Developed technology
 
3,219

 
307

 
613

 
613

 
613

 
613

 
460

 

Total future amortization expense
 
$
15,661

 
$
926

 
$
1,842

 
$
1,837

 
$
1,822

 
$
1,822

 
$
1,669

 
$
5,743