Intangible Assets, Other Assets, Net and Goodwill

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Other Assets and Goodwill

INTANGIBLE ASSETS, OTHER ASSETS AND GOODWILL:

Intangible Assets

Intangible assets as of December 31, 2015 and 2014 were as follows (dollars in thousands):

	2015
	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net		Weighted Average Amortization Period (in Years)
Intangible assets:
Amortizable intangible assets:
Operational network rights	$	477,706	$	(3,693	)	$	474,013	100
Track access agreements	415,348		(57,751		)	357,597		43
Customer contracts and relationships	259,897		(35,405		)	224,492		30
Service agreements	37,622		(16,213		)	21,409		28
Trade names/trademarks	13,327		(268		)	13,059		40
Favorable operating leases	2,972		(590		)	2,382		5
Total amortizable intangible assets	$	1,206,872	$	(113,920	)	$	1,092,952	62
Non-amortizable intangible assets:
Perpetual track access agreements						35,891
Operating license						109
Total intangible assets, net						$	1,128,952

	2014
	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, Net		Weighted Average Amortization Period (in Years)
Intangible assets:
Amortizable intangible assets:
Track access agreements	$	424,835	$	(46,367	)	$	378,468	43
Customer contracts and relationships	177,179		(26,738		)	150,441		36
Service agreements	37,622		(14,880		)	22,742		28
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

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

In the purchase price allocation of Freightliner, the Company assigned the following fair values to amortizable intangible assets: £324.0 million to operational network rights, £57.0 million to customer contracts and relationships, £9.2 million to trademark/trade names and £2.0 million to amortizable favorable operating leases. See Note 3, Changes in Operations, for additional information on these amortizable intangible assets.

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.

For the years ended December 31, 2015, 2014 and 2013, the aggregate amortization expense associated with intangible assets was $29.4 million, $22.0 million and $22.5 million, respectively. The Company estimates the future aggregate amortization expense related to its intangible assets as of December 31, 2015 will be as follows for the periods presented (dollars in thousands):

	Amount
2016	$	31,028
2017	30,894
2018	29,466
2019	25,112
2020	24,755
Thereafter	951,697
Total	$	1,092,952

Other Assets

Other assets as of December 31, 2015 and 2014 were as follows (dollars in thousands):

	2015
	Gross Carrying Amount		Accumulated Amortization			Other Assets, Net		Weighted Average Amortization Period (in Years)
Other assets:
Deferred financing costs	$	28,248	$	(4,740	)	$	23,508	4
Other assets	22,836		—			22,836		0
Total other assets, net	$	51,084	$	(4,740	)	$	46,344

	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

For the years ended December 31, 2015, 2014 and 2013, the Company amortized $7.6 million, $12.2 million and $10.2 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 2015 amortization amount included $2.0 million associated with the write-off of deferred financing fees as a result of the March 2015 refinancing of the Company's credit agreement. 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 8, 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.

As of December 31, 2015, 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):

	Amount
2016	$	5,987
2017	5,798
2018	5,547
2019	5,110
2020	1,066
Total	$	23,508

Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 were as follows (dollars in thousands):

	December 31, 2015
	North American Operations			Australian Operations			U.K./European Operations			Total Operations
Balance at beginning of period	$	615,403		$	—		$	13,412		$	628,815
Goodwill acquired	920			42,312			172,821			216,053
Acquisition accounting adjustments	(6,895		)	—			—			(6,895		)
Currency translation adjustment	(4,194		)	(3,000		)	(4,204		)	(11,398		)
Balance at end of period	$	605,234		$	39,312		$	182,029		$	826,575

	December 31, 2014
	North American Operations			Australian Operations		U.K./European Operations			Total Operations
Balance at beginning of period	$	615,228		$	—	$	15,234		$	630,462
Goodwill acquired	2,409			—		—			2,409
Acquisition accounting adjustments	295			—		—			295
Currency translation adjustment	(2,529		)	—		(1,822		)	(4,351		)
Balance at end of period	$	615,403		$	—	$	13,412		$	628,815

The acquired goodwill for the year ended December 31, 2015 is related to the acquisition of Freightliner. See Note 3, Changes in Operations, for additional information regarding the Freightliner acquisition.