Goodwill, Other Intangible Assets, And Deferred Charges

12 Months Ended

Dec. 31, 2014

Goodwill, Other Intangible Assets, And Deferred Charges [Abstract]

Goodwill, Other Intangible Assets, And Deferred Charges

NOTE F – GOODWILL, OTHER INTANGIBLE ASSETS, AND DEFERRED CHARGES

Amortization expense for intangible assets was approximately $3.7 million, $5.7 million, and $3.0 million for the years ended December 31, 2014, 2013, and 2012, respectively. Amortization expense for deferred charges –drydock was approximately $18.4 million, $10.6 million, and $6.6 million for the years ended December 31, 2014, 2013, and 2012, respectively. Amortization expense for both intangible assets and dry dock are included in “Amortization Expense” in our Consolidated Statement of Income. Amortization expense for deferred charges –financing was approximately $447,000, $953,000, and $1.4 million for the years ended December 31, 2014, 2013, and 2012, respectively, which is included in “Interest Expense” in our Consolidated Statement of Income. The following table presents details of goodwill, other intangible assets and deferred charges as of December 31, 2014:



(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	$	(8)	$	-	$	57
Trade names - UOS	144 months		1,805		(448)		-		1,357
Customer Relationships - FSI	240 months		425		(50)		-		375
Customer Relationships - UOS	144 months		30,927		(7,674)		-		23,253
Favorable Lease - UOS	13 months		1,072		(1,072)		-		-
Favorable Lease - UOS EBO			11,327		-		(11,327)		-
Total Definite Life Intangibles		$	45,621	$	(9,252)	$	(11,327)	$	25,042

Deferred Charges
Drydocking Costs	various	$	55,314	$	(29,160)	$	(916)	$	25,238
Financing Charges and Other	various		4,906		(1,487)		-		3,419
Total Deferred Charges		$	60,220	$	(30,647)	$	(916)	$	28,657

As a result of contract renewals for both the TEC and Mosaic contracts during 2014, we extended the useful lives of our UOS intangible assets related to these contracts from eight years to twelve years resulting in a decrease in amortization expense of $402,000 in the fourth quarter of 2014. This adjustment resulted in an increase of $.06 to earnings per share for the year 2014 and will decrease future annual amortization expense by approximately $1.6 million.

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		1,072		(1,072)		-		-
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		$	50,772	$	(10,689)	$	(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

- 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.

+ References+ Details