Intangible Assets, Other Assets, Net and Goodwill

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

INTANGIBLE ASSETS, OTHER ASSETS AND GOODWILL:

Intangible Assets

Intangible assets as of December 31, 2014 and 2013 were as follows (dollars in thousands):



	2014
	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net		Weighted Average Amortization Period (in Years)
Intangible assets:
Amortizable intangible assets:
Service agreements	$	37,622	$	(14,880	)	$	22,742	28
Customer contracts and relationships	177,179		(26,738		)	150,441		36
Track access agreements	424,835		(46,367		)	378,468		43
Total amortizable intangible assets	$	639,636	$	(87,985	)	$	551,651	40
Non-amortizable intangible assets:
Perpetual track access agreements						35,891
Operating license						121
Total intangible assets, net						$	587,663

	2013
	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net		Weighted Average Amortization Period (in Years)
Intangible assets:
Amortizable intangible assets:
Service agreements	$	37,622	$	(13,547	)	$	24,075	28
Customer contracts and relationships	178,603		(22,899		)	155,704		36
Track access agreements	430,241		(32,116		)	398,125		43
Total amortizable intangible assets	$	646,466	$	(68,562	)	$	577,904	40
Non-amortizable intangible assets:
Perpetual track access agreements						35,891
Operating license						138
Total intangible assets, net						$	613,933

The Company expenses costs incurred to renew or extend the term of its track access agreements.

The perpetual track access agreements on one of the Company's railroads have been determined to have an indefinite useful life and, therefore, are not subject to amortization.

In the years ended December 31, 2014, 2013 and 2012, the aggregate amortization expense associated with intangible assets was $22.0 million, $22.5 million and $6.8 million, respectively. The Company estimates the future aggregate amortization expense related to its intangible assets as of December 31, 2014 will be as follows for the periods presented (dollars in thousands):



2015	$	21,520
2016	21,471
2017	21,471
2018	19,817
2019	14,857
Thereafter	452,515
Total	$	551,651

Other Assets

Other assets as of December 31, 2014 and 2013 were as follows (dollars in thousands):



	2014
	Gross Carrying Amount		Accumulated Amortization			Other Assets, Net		Weighted Average Amortization Period (in Years)
Other assets:
Deferred financing costs	$	27,158	$	(4,261	)	$	22,897	4
Other assets	16,970		—			16,970		0
Total other assets, net	$	44,128	$	(4,261	)	$	39,867



	2013
	Gross Carrying Amount		Accumulated Amortization			Other Assets, Net		Weighted Average Amortization Period (in Years)
Other assets:
Deferred financing costs	$	43,650	$	(11,930	)	$	31,720	4
Other assets	52,241		(14		)	52,227		0
Total other assets, net	$	95,891	$	(11,944	)	$	83,947

In the years ended December 31, 2014, 2013 and 2012, the Company amortized $12.2 million, $10.2 million and $7.0 million, respectively, of deferred financing costs as an adjustment to interest expense. Deferred financing costs are amortized as an adjustment to interest expense over the terms of the related debt using the effective-interest method for the term debt and the straight-line method for the revolving credit facility portion of debt. The 2014 amortization amount included $4.6 million associated with the write-off of deferred financing fees as a result of the May 2014 refinancing of the Company's credit agreement, see Note 9, Long-Term Debt, for additional information regarding the Company's credit agreement. The 2013 amortization amount included $0.5 million associated with the write-off of deferred financing costs as a result of the prepayment of the remaining balance on the Company's Canadian term loan. The 2012 amortization amount included $3.2 million associated with the write-off of deferred financing fees as a result of the October 2012 refinancing of the Company's senior credit facility and senior notes.

As of December 31, 2014, the Company estimated the future interest expense related to amortization of its deferred financing costs will be as follows for the periods presented (dollars in thousands):



2015	$	5,708
2016	5,439
2017	5,190
2018	4,755
2019	1,805
Total	$	22,897

Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 were as follows (dollars in thousands):



	2014			2013
Goodwill:
Balance at beginning of period	$	630,462		$	634,953
Goodwill acquired	2,409			—
Purchase accounting adjustments	295			(3,087		)
Currency translation adjustment	(4,351		)	(1,404		)
Balance at end of period	$	628,815		$	630,462

The Company's goodwill for the years ended December 31, 2014 and 2013 was attributable to the Company's North American & European operating segment.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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