Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

8. Goodwill and Other Intangible Assets

Goodwill and indefinite lived intangible assets are tested for impairment at least annually. See Note 1 for further discussion of the Company’s goodwill testing in 2015.

Goodwill

Changes in the carrying value of goodwill for the years ended December 31, 2015 and 2014 are shown in the table below (dollars in thousands):



	2015		2014
Balance as of January 1,	$	487,569	$	495,214
Acquisitions	453		165
Divestitures	—		(7,508		)
Effect of foreign currency translations	—		(302		)
Balance as of December 31,	$	488,022	$	487,569

Acquired Intangible Assets

Acquired intangible assets subject to amortization as of December 31, 2015 and 2014, were as follows (dollars in thousands):



	As of December 31,
	2015							2014
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Non-competition agreements	$	18,928	$	(15,098	)	$	3,830	$	18,848	$	(13,520	)	$	5,328
Customer relationships	45,763		(25,131		)	20,632		45,771		(20,407		)	25,364
Trademarks and other	586		(494		)	92		586		(451		)	135
Total	$	65,277	$	(40,723	)	$	24,554	$	65,205	$	(34,378	)	$	30,827

Acquired intangible assets subject to amortization are amortized on a straight-line basis. Non-competition agreements are amortized over the applicable terms of the contract, typically from two to ten years. Customer relationships are generally amortized over three to ten years, based on the period over which economic benefits are provided. Trademarks are generally amortized from one to three years.

Amortization

Amortization expense for acquired intangible assets was $6.4 million, $6.6 million and $5.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

For each of the five years following December 31, 2015, estimated future amortization expense is as follows (dollars in thousands):



	2016	2017	2018	2019	2020	Total
Estimated future amortization expense	6,079	5,491	5,190	4,747	2,355	$	23,862

Indefinite-Lived Intangible Assets

As of both December 31, 2015 and 2014, $9.7 million and $5.3 million of licenses and trademarks, respectively, obtained in conjunction with acquisitions were not subject to amortization. Costs to renew licenses with indefinite lives are expensed as incurred and recorded in “Operations and administration expenses” in the consolidated statements of income.

- 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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