Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

GOODWILL, INTANGIBLES AND OTHER ASSETS

The Company has one reporting unit that has goodwill, CAM. The carrying amounts of goodwill are as follows (in thousands):

	CAM
Carrying value as of December 31, 2015	$	34,395
Carrying value as of September 30, 2016	$	34,395

The Company's intangible assets by reportable segment are as follows (in thousands):

	Customer			Airline
	Relationships			Certificates		Total
	ACMI Services
Carrying value as of December 31, 2015	$	1,334		$	3,000	$	4,334
Amortization	(211		)	—		(211		)
Carrying value as of September 30, 2016	$	1,123		$	3,000	$	4,123

The customer relationship intangible amortizes through 2020. The airline certificates have an indefinite life and therefore are not amortized.

In January 2014, the Company acquired a 25 percent equity interest in West Atlantic AB of Gothenburg, Sweden ("West"). West, through its two airlines, Atlantic Airlines Ltd. and West Atlantic Sweden AB, operates a fleet of aircraft on behalf of European regional mail carriers and express logistics providers. The airlines operate a combined fleet of British Aerospace ATPs, Bombardier CRJ-200-PFs, and Boeing 767 and 737 aircraft. West leases three Boeing 767 aircraft from the Company. The Company’s carrying value of West was $10.3 million and $13.1 million at September 30, 2016 and December 31, 2015, respectively. The carrying value is reflected in “Other Assets” in the Company’s consolidated balance sheets.

The Company's lease incentive is as follows (in thousands):

	Lease
	Incentive
Carrying value as of December 31, 2015	$	—
Warrants granted March 2016 (see Note B)	37,586
Amortization	—
Carrying value as of March 31, 2016	37,586
Warrants granted May 2016 (see Note B)	13,758
Amortization	(934		)
Carrying value as of June 30, 2016	50,410
Amortization	(1,432		)
Carrying value as of September 30, 2016	$	48,978

The lease incentive began to amortize in April 2016, with the commencement of certain aircraft leases, over the duration of the related leases.