Goodwill, Other Intangible Assets, And Deferred Charges

12 Months Ended

Dec. 31, 2015

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

Goodwill, Other Intangible Assets, And Deferred Charges

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

During 2015, we adopted ASU 2015-03 and, as a result, reclassified approximately $2.9 million of deferred debt issuance costs from deferred charges, net of accumulated amortization to offset against long-term debt on our Consolidated Balance Sheet as of December 31, 2014. As of December 31, 2015, the amount of deferred debt issuance costs was $3.0 million and was included as an offset to current maturities of long-term debt on our Consolidated Balance Sheet. Amortization expense related to these charges was $2.2 million and $0.6 million for the years ended December 31, 2015 and 2014, respectively.

Amortization expense for intangible assets was approximately $2.5 million and $3.7 million for the years ended December 31, 2015 and 2014, respectively. Amortization expense for deferred charges was approximately $14.2 million and $18.5 million for the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, gross deferred charges and accumulated amortization of deferred charges was $48.5 million and $25.5 million, respectively. As of December 31, 2014, gross deferred charges and accumulated amortization of deferred charges was $55.6 million and $29.8 million, respectively.

The following table presents details of goodwill, other intangible assets and deferred charges for the year ended December 31, 2015:



(All Amounts in Thousands)			Balance at										Balance at
	Amortization		December 31,		Cash		Impairment/				Non-Cash		December 31,
	Period		2014		Additions		Disposals		Amortization		Reclassifications		2015
Indefinite Life Intangibles
Goodwill		$	2,735	$	-	$	(2,735)	$	-	$	-	$	-
Total Indefinite Life Intangibles		$	2,735	$	-	$	(2,735)	$	-	$	-	$	-

Definite Life Intangibles
Trade names - FSI	240 months	$	57	$	-	$	(53)	$	(4)	$	-	$	-
Trade names - UOS	144 months		1,357		-		(1,221)		(136)		-		-
Customer Relationships - FSI	240 months		375		-		(358)		(17)		-		-
Customer Relationships - UOS	144 months		23,253		-		(20,908)		(2,345)		-		-
Total Definite Life Intangibles		$	25,042	$	-	$	(22,540)	$	(2,502)	$	-	$	-

Deferred Charges
Drydocking Costs	various	$	25,238	$	12,816	$	(4,455)	$	(13,696)	$	2,220	$	22,123
Other Deferred Charges	various		549		820		-		(455)		-		914
Total Deferred Charges		$	25,787	$	13,636	$	(4,455)	$	(14,151)	$	2,220	$	23,037

Impairment

We test goodwill for impairment annually as of December 1 or on an interim basis if triggering events indicate that the fair value of the asset has decreased below its carrying value. Additionally, we review our other intangible assets for impairment when events or circumstances indicate that the carrying value of a particular asset may not be recoverable.

We tested our goodwill using the income approach, which estimates the fair value of our reporting units using various cash flow and earnings projections discounted at a rate estimated to approximate the reporting units’ weighted average cost of capital. Based on the continuing decline in our results for the UOS service, reduced contract rates and volumes and a less favorable outlook on coal demand, we determined that the implied fair value of goodwill was less than its carrying value. As such, we recorded an impairment loss of approximately $1.9 million, which related to the entire goodwill balance generated from our acquisition of UOS, which we report in the Jones Act segment.

As a result of our Strategic Plan, we reclassified certain non-core assets to assets held for sale as of December 31, 2015 at fair market value. As a result, we wrote off approximately $0.8 million and $0.4 million related to the goodwill balance and trade names and customer relationships, respectively, that related to FSI, which we report in our Rail-Ferry segment. Additionally, we wrote off approximately $2.4 million of unamortized drydocking costs associated with various other assets that we reclassified to assets held for sale at December 31, 2015. Refer to Note E – Assets Held for Sale for further discussion.

- 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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