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Deferred Charges And Intangible Assets
 12 Months Ended
Dec. 31, 2013
Deferred Charges And Intangible Assets [Abstract]  
Deferred Charges And Intangible Assets

NOTE N – DEFERRED CHARGES AND INTANGIBLE ASSETS

 

Our Goodwill increased by $35,000 during 2013 due to the post-closing purchase price adjustment payments relating to our acquisitions of UOS and FSI.  As part of the acquisition of UOS, we acquired the rights to purchase a Tug/Barge unit. In applying purchase accounting, an intangible asset was established based on favorable contractual lease payments as compared to market rates and another intangible asset was established based on a comparison of the contractual early buy-out purchase price as compared to the estimated fair value at the end of the lease term. As a result of the early buy-out in September 2013, we reclassified $11.3 million of intangible assets related to the favorable early buy-out to the new cost basis of the Tug/Barge unit.

 

 

Amortization expense for intangible assets was approximately $5.7 million and $3.0 million for the years ended December 31, 2013 and 2012, respectively. Amortization expense for deferred assets was approximately $11.6 million and $8.0 million for the years ended December 31, 2013 and 2012, respectively. The following table presents details of goodwill, other intangible assets and deferred charges as of December 31, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(All Amounts in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization Period

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Reclassified

 

 

Net Carrying Amount

Indefinite Life Intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

$
2,735 

 

$

 -

 

$

 -

 

$
2,735 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Indefinite Life Intangibles

 

 

$
2,735 

 

$

 -

 

$

 -

 

$
2,735 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Definite Life Intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names - FSI

240 months

 

$
65 

 

$
(5)

 

$

 -

 

$
60 

Trade names - UOS

96 months

 

 
1,805 

 

 
(244)

 

 

 -

 

 
1,561 

Customer Relationships - FSI

240 months

 

 
425 

 

 
(29)

 

 

 -

 

 
396 

Customer Relationships - UOS

96 months

 

 
30,927 

 

 
(4,188)

 

 

 -

 

 
26,739 

Favorable Lease - UOS

13 months

 

 
1,071 

 

 
(1,071)

 

 

 -

 

 

-

Favorable Lease - UOS EBO

 

 

 
11,327 

 

 

 -

 

 
(11,327)

 

 

 -

Favorable Charter - Dry Bulk Cape Holding, Inc.

24 months

 

 
5,151 

 

 
(5,151)

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Definite Life Intangibles

 

 

$
50,771 

 

$
(10,688)

 

$
(11,327)

 

$
28,756 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Drydocking Costs

various

 

$
46,667 

 

$
(18,394)

 

$
(1,845)

 

$
26,428 

Financing Charges and Other

various

 

 
3,921 

 

 
(1,040)

 

 

 -

 

 
2,881 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Deferred Charges

 

 

$
50,588 

 

$
(19,434)

 

$
(1,845)

 

$
29,309 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents details of goodwill, other intangible assets and deferred charges as of December 31, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(All Amounts in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization Period

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Reclassified

 

 

Net Carrying Amount

Indefinite Life Intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

$
2,700 

 

$

 -

 

$

 -

 

$
2,700 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Indefinite Life Intangibles

 

 

$
2,700 

 

$

 -

 

$

 -

 

$
2,700 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Definite Life Intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names - FSI

240 months

 

$
65 

 

$
(1)

 

$

 -

 

$
64 

Trade names - UOS

96 months

 

 
1,805 

 

 
(19)

 

 

 -

 

 
1,786 

Customer Relationships - FSI

240 months

 

 
425 

 

 
(8)

 

 

 -

 

 
417 

Customer Relationships - UOS

96 months

 

 
30,927 

 

 
(323)

 

 

 -

 

 
30,604 

Favorable Lease - UOS

13 months

 

 
1,071 

 

 
(129)

 

 

 -

 

 
942 

Favorable Lease - UOS EBO

 

 

 
11,327 

 

 

 -

 

 

 -

 

 
11,327 

Favorable Charter - Dry Bulk Cape Holding, Inc.

24 months

 

 
5,151 

 

 
(4,507)

 

 

 -

 

 
644 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Definite Life Intangibles

 

 

$
50,771 

 

$
(4,987)

 

$

 -

 

$
45,784 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Drydocking Costs

various

 

$
27,076 

 

$
(9,835)

 

$

 -

 

$
17,241 

Financing Charges and Other

various

 

 
3,801 

 

 
(1,150)

 

 

 -

 

 
2,651 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Deferred Charges

 

 

$
30,877 

 

$
(10,985)

 

$

 -

 

$
19,892