GOODWILL AND ACQUIRED INTANGIBLES
Goodwill
Goodwill in our refining segment related to our Utah refinery totaled $31 million at both December 31, 2013 and 2012. We recorded approximately $9 million of goodwill associated with TLLP’s acquisition of the Northwest Product System during 2013. In our retail segment, goodwill totaled $1 million at December 31, 2013 and 2012. We derecognized $4 million of goodwill in our retail segment as a result of the sale of the Hawaii Business in 2013, which is included in noncurrent assets related to discontinued operations in our consolidated balance sheet at December 31, 2012.
For the periods ending December 31, 2013, 2012 and 2011, we used the qualitative approach prescribed by the ASU issued by the FASB in September 2011. This ASU evaluates relevant events and or circumstances to test for possible goodwill impairment. Based on the analysis performed, we determined no further testing was required and no goodwill impairment charges were recognized in 2013, 2012 or 2011.
Acquired Intangibles
The following table provides the historical cost and accumulated amortization for each major class of acquired intangible assets, excluding goodwill (in millions):
|
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | December 31, 2012 |
| Historical Cost | | Accumulated Amortization | | Net Book Value | | Historical Cost | | Accumulated Amortization | | Net Book Value |
Refining operating permits and emissions credits | $ | 279 |
| | $ | 107 |
| | $ | 172 |
| | $ | 266 |
| | $ | 99 |
| | $ | 167 |
|
Retail supply network | 55 |
| | 31 |
| | 24 |
| | 51 |
| | 29 |
| | 22 |
|
Trade names | 49 |
| | 12 |
| | 37 |
| | 35 |
| | 10 |
| | 25 |
|
ampm® License | 31 |
| | 1 |
| | 30 |
| | — |
| | — |
| | — |
|
Total | $ | 414 |
| | $ | 151 |
| | $ | 263 |
| | $ | 352 |
| | $ | 138 |
| | $ | 214 |
|
All of our acquired intangible assets are subject to amortization with the exception of certain indefinite-lived intangible assets totaling $15 million and $1 million at December 31, 2013 and 2012, respectively. These indefinite-lived intangible assets primarily relate to the ARCO® brand acquired in 2013 in connection with the Los Angeles Acquisition, which is included in the trade names category. Amortization expense of acquired intangible assets was $13 million, $12 million and $18 million for the years ended December 31, 2013, 2012 and 2011, respectively. Our estimated amortization expense for each of the following five years is: 2014 — $12 million; 2015 — $12 million; 2016 — $12 million; 2017 — $12 million; and 2018 — $11 million.
