Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets [Abstract]

7. Goodwill and Intangible Assets

Goodwill

Activity related to goodwill consisted of the following (in thousands):

	2014		2013
Balance, beginning of year	$	193,510	$	160,936
Preliminary purchase price allocations for acquisitions (Note 6)		42,278		32,041
Purchase accounting adjustments		342		533
Balance, end of year	$	236,130	$	193,510

Intangible Assets with Definite Lives

Following is a summary of the Company's intangible assets that are subject to amortization (in thousands):

	Year Ended December 31,
	2014							2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	54,389	$	(16,595	)	$	37,794	$	31,156	$	(10,835	)	$	20,321
Non-compete agreements		1,601		(866	)		735		1,477		(715	)		762
Customer backlog		2,341		(2,265	)		76		402		(170	)		232
Trade name		167		(148	)		19		159		(83	)		76
Internally developed software		8,897		(1,416	)		7,481		4,604		(508	)		4,096
Total	$	67,395	$	(21,290	)	$	46,105	$	37,798	$	(12,311	)	$	25,487

The estimated useful lives of identifiable intangible assets are as follows:

Customer relationships	3 – 10 years
Non-compete agreements	3 – 5 years
Customer backlog	8 – 11 months
Internally developed software	1 – 7 years
Trade name	1 year

The weighted average amortization periods for customer relationships and non-compete agreements are six years and five years, respectively. Total amortization expense for the years ended December 31, 2014, 2013, and 2012 was approximately $14.5 million, $8.0 million, and $7.8 million, respectively.

Estimated annual amortization expense for the next five years ended December 31 is as follows and excludes the impact of the acquisition referenced in Note 15, Subsequent Events (in thousands):

2015	$	10,906
2016	$	9,683
2017	$	7,323
2018	$	6,363
2019	$	5,466
Thereafter	$	6,364

- 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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