| INTANGIBLE ASSETS OTHER THAN GOODWILL |
NOTE 4: INTANGIBLE ASSETS OTHER THAN GOODWILL | | | | | | | | | | Intangible assets | | September 30, 2018 | | | December 31, 2017 | | | Acquisition cost (*) | | $ | 190,212 | | | $ | 200,610 | | | Accumulated amortization | | | (77,924 | ) | | | (73,790 | ) | | Write offs | | | — | | | | (10,398 | ) | | | | | | | | | | | | Total Intangible assets net book value | | $ | 112,288 | | | $ | 116,422 | | | | | | | | | | | | | (*) | As of both September 30, 2018 and December 31, 2017, intangible assets associated with the favorable lease terms included an amount of $1,150 related to purchase options for the vessels. | | | | | | | | | | | |
Amortization expense for the three month periods ended September 30, 2018 and 2017 amounted to $1,400 and $1,775, respectively, and for the nine month periods ended September 30, 2018 and 2017 amounted to $4,134 and $5,220, respectively. The remaining aggregate amortization of acquired intangibles as of September 30, 2018 will be as follows: | | | | | Period | | | | Year One | | $ | 5,581 | | Year Two | | | 5,588 | | Year Three | | | 5,581 | | Year Four | | | 5,581 | | Year Five | | | 5,581 | | Thereafter | | | 83,226 | | | | | | | Total | | $ | 111,138 | | | | | | |
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NOTE 7: INTANGIBLE ASSETS/LIABILITIES OTHER THAN GOODWILL Net Book Value of Intangible Assets/Liabilities other than Goodwill as at December 31, 2017 | | | | | | | | | | | | | | | | | | | Acquisition Cost | | | Accumulated Amortization | | | Write off | | | Net Book Value December 31, 2017 | | Trade name | | $ | 100,420 | | | $ | (45,156) | | | $ | — | | | $ | 55,264 | | Port terminal operating rights | | | 53,152 | | | | (10,889) | | | | — | | | | 42,263 | | Customer relationships | | | 35,490 | | | | (17,745) | | | | — | | | | 17,745 | | Favorable lease terms(*) | | | 11,548 | | | | — | | | | (10,398) | | | | 1,150 | | Total Intangible assets | | $ | 200,610 | | | $ | (73,790) | | | $ | (10,398) | | | $ | 116,422 | |
Net Book Value of Intangible Assets/Liabilities other than Goodwill as at December 31, 2016 | | | | | | | | | | | | | | | | | | | Acquisition Cost | | | Accumulated Amortization | | | Write off | | | Net Book Value December 31, 2016 | | Trade name | | $ | 100,420 | | | $ | (41,303) | | | $ | — | | | $ | 59,117 | | Port terminal operating rights | | | 53,152 | | | | (10,162) | | | | — | | | | 42,990 | | Customer relationships | | | 35,490 | | | | (15,971) | | | | — | | | | 19,519 | | Favorable lease terms(*) | | | 82,485 | | | | (6,359) | | | | (70,937) | | | | 5,189 | | Total Intangible assets | | | 271,547 | | | | (73,795) | | | | (70,937) | | | | 126,815 | | Unfavorable lease terms(**) | | | (24,721) | | | | — | | | | 24,721 | | | | — | | Total | | $ | 246,826 | | | $ | (73,795) | | | $ | (46,216) | | | $ | 126,815 | |
(*) | As of December 31, 2017 and 2016, intangible assets associated with the favorable lease terms included an amount of $1,150 and $1,180, respectively related to purchase options for the vessels (see also Note 2(n)). During the year ended December 31, 2017, acquisition costs of $10,398 and accumulated amortization of $7,001 of favorable lease terms considered impaired and were written off resulting in a loss of $3,397. During the year ended December 31, 2016, acquisition costs of $70,937 and accumulated amortization of $57,930 of favorable lease terms were written off resulting in a loss of $13,007. This write-off resulted from the early redelivery of one vessel. |
(**) | As of December 31, 2016, the intangible liability associated with the unfavorable lease terms included an amount of $0, related to purchase options held by third parties (see also Note 2(n)). During the year ended December 31, 2016, acquisition costs of $24,721 and accumulated amortization of $17,406 of unfavorable lease terms were written off resulting in an income of $7,315. This write-off resulted from the early redelivery of one vessel. As of December 31, 2016, no purchase options held by third parties have been exercised. |
On December 15, 2014, Navios Logistics acquired two companies for a total consideration of $17,000, of which $10,200 was paid in 2014 and $6,800 was paid in 2015. These companies, as free zone direct users, hold the right to occupy approximately 53 acres of undeveloped riverfront land located in the Nueva Palmira free zone in Uruguay, adjacent to Navios Logistics’ existing port. | | | | | | | | | | | | Amortization Expense and Write Offs Year Ended December 31, 2017 | | Amortization Expense and Write Offs Year Ended December 31, 2016 | | Amortization Expense and Write Offs Year Ended December 31, 2015 | Trade name | | $ | 3,853 | | $ | 3,902 | | $ | 3,811 | Port terminal operating rights | | | 727 | | | 706 | | | 1,006 | Customer relationships | | | 1,775 | | | 1,775 | | | 1,775 | Favorable lease terms | | | 4,038 | | | 17,260 | | | 32,444 | Unfavorable lease terms | | | — | | | (7,526) | | | (14,615) | Total | | $ | 10,393 | | $ | 16,117 | | $ | 24,420 | | | | | | | | | | | | | | | | | | | | | |
The remaining aggregate amortization of acquired intangibles as of December 31, 2017 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Description | | Within one year | | | Year Two | | | Year Three | | | Year Four | | | Year Five | | | Thereafter | | | Total | Trade name | | $ | 2,811 | | | $ | 2,811 | | | $ | 2,818 | | | $ | 2,811 | | | $ | 2,811 | | | $ | 41,202 | | | $ | 55,264 | Port terminal operating rights | | | 985 | | | | 985 | | | | 985 | | | | 985 | | | | 985 | | | | 37,338 | | | | 42,263 | Customer relationships | | | 1,775 | | | | 1,775 | | | | 1,775 | | | | 1,775 | | | | 1,775 | | | | 8,870 | | | | 17,745 | Total amortization | | $ | 5,571 | | | $ | 5,571 | | | $ | 5,578 | | | $ | 5,571 | | | $ | 5,571 | | | $ | 87,410 | | | $ | 115,272 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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