| Goodwill and Intangible Assets |
Note 3. Goodwill and Intangible Assets
The following table presents changes in goodwill by segment (in thousands):
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Goodwill Allocated to
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Wholesale
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GDSO
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Reporting
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Reporting
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Unit
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Unit
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Total
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Balance at December 31, 2014
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$
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121,752
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$
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32,326
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$
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154,078
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Acquisition of Warren Equities, Inc.
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—
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186,437
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186,437
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Acquisition of Capitol Petroleum Group
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—
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94,854
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94,854
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Balance at December 31, 2015
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121,752
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313,617
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435,369
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Impairment (1)
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(121,752)
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—
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(121,752)
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Disposals
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—
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(17,920)
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(17,920)
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Other activity (2)
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—
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(929)
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(929)
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Balance at December 31, 2016
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$
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—
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$
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294,768
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$
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294,768
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(1)
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See Note 2 for a description of the facts and circumstances related to the impairment charges recognized in 2016. |
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(2)
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Other activity represents changes to goodwill as a result of finalizing the acquisition accounting related to the acquisition of Warren Equities, Inc. (see Note 18). |
Intangible assets consisted of the following (in thousands):
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Gross
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Net
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Carrying
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Accumulated
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Intangible
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Amortization
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Amount
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Amortization
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Assets
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Period
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At December 31, 2016
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Intangible assets subject to amortization:
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Terminalling services
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$
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26,365
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$
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(12,423)
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$
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13,942
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20 years
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Customer relationships
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43,986
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(40,323)
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3,663
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2-15 years
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Supply contracts
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77,771
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(31,674)
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46,097
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5-15 years
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Favorable leasehold interests
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2,960
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(2,086)
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874
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2-5 years
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Brand incentive program
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1,445
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(1,276)
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169
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5 years
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Other intangible assets
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779
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(511)
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268
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20 years
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Total intangible assets
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$
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153,306
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$
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(88,293)
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$
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65,013
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At December 31, 2015
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Intangible assets subject to amortization:
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Terminalling services
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$
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26,365
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$
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(11,087)
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$
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15,278
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20 years
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Customer relationships
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43,986
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(39,691)
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4,295
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2-15 years
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Supply contracts
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77,771
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(24,412)
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53,359
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5-15 years
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Favorable leasehold interests
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2,960
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(794)
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2,166
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2-5 years
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Brand incentive program
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1,445
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(1,117)
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328
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5 years
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Other intangible assets
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779
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(511)
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268
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20 years
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Total intangible assets
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$
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153,306
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$
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(77,612)
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$
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75,694
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The aggregate amortization expense was approximately $9.4 million, $13.5 million and $18.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. In addition, in connection with the 2015 acquisitions of Warren and Capitol, the Partnership recognized amortization expense related to leasehold interests of $1.3 million and $0.8 million in 2016 and 2015, respectively. The decrease in amortization expense in 2016 compared to 2015 and in 2015 compared to 2014 was due to intangible assets that became fully amortized during 2015.
The estimated annual intangible asset amortization expense for future years ending December 31 is as follows (in thousands):
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2017
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$
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9,638
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2018
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9,060
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2019
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9,035
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2020
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8,897
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2021
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8,897
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Thereafter
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19,486
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Total intangible assets
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$
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65,013
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