GOODWILL AND OTHER INTANGIBLE ASSETS
The carrying value of goodwill as of December 31, 2013 and 2012 was as follows:
|
| | | | | | | |
| As of December 31, |
(in thousands) | 2013 | | 2012 |
Regulated Energy segment | $ | 2,790 |
| | $ | 3,216 |
|
Unregulated Energy segment | 1,564 |
| | 874 |
|
Total | $ | 4,354 |
| | $ | 4,090 |
|
Goodwill in the regulated energy segment is comprised of approximately $2.5 million from the FPU merger in October 2009, $170,000 from the purchase of operating assets from IGC in August 2010 and $150,000 from the purchase of Fort Meade in December 2013. During 2013, approximately $576,000 of the $746,000 goodwill that was originally recorded as a result of the IGC acquisition was reclassified to regulatory asset pursuant to the regulatory order which allowed recovery of the amount in rates. See Note 18, Rates and Other Regulatory Activities for further information. Goodwill in the unregulated energy segment is comprised of $237,000 from the purchase of the operating assets of Austin Cox in June 2013, $453,000 from the purchase of the operating assets of Glades in February 2013, $200,000 from the purchase of the operating assets from Crescent in December 2011 and $674,000 related to the premium paid by Sharp from its acquisitions in the late 1980s and 1990s.
We test for impairment of goodwill at least annually. The testing for 2013 and 2012 indicated no impairment of goodwill.
The carrying value and accumulated amortization of intangible assets subject to amortization as of December 31, 2013 and 2012 are as follows:
|
| | | | | | | | | | | | | | | |
| As of December 31, |
| 2013 | | 2012 |
(in thousands) | Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization |
Customer lists | $ | 3,993 |
| | $ | 1,389 |
| | $ | 3,693 |
| | $ | 1,067 |
|
Non-Compete agreements | 353 |
| | 87 |
| | 103 |
| | 43 |
|
Other | 270 |
| | 165 |
| | 270 |
| | 158 |
|
Total | $ | 4,616 |
| | $ | 1,641 |
| | $ | 4,066 |
| | $ | 1,268 |
|
The customer lists are intangible assets which were acquired in the purchases of the operating assets of Glades in February 2013, Virginia LP in February 2010 and the FPU merger in October 2009 and are being amortized over seven to 12 years. The non-compete agreements are intangible assets acquired in the purchase of the operating assets of Austin Cox in June 2013 and Virginia LP in February 2010 and are being amortized over a seven-year period. The other intangible assets consist of acquisition costs from our propane distribution acquisitions in the late 1980s and 1990s and are being amortized over 40 years.
For the years ended December 31, 2013, 2012 and 2011, amortization expense of intangible assets was $373,000, $329,000 and $332,000, respectively. Amortization expense of intangible assets is expected to be: $400,000 for each year in 2014 and 2015, $375,000 for 2016, $373,000 for 2017, and $344,000 for 2018.
