GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2012

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

NOTE D — GOODWILL AND INTANGIBLE ASSETS

Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired. Goodwill by reportable operating segment consisted of the following:

			Premium Logistics
	Household Goods		and Expedited
	Moving Services		Freight Services		Total
	($ thousands)
Balance December 31, 2011	$	3,660	$	—	$	3,660
Goodwill acquired — Panther	—		78,944		78,944
Balance June 30, 2012	$	3,660	$	78,944	$	82,604

Goodwill associated with the Panther acquisition was attributable primarily to intangible assets that do not qualify for separate recognition, an assembled workforce and the recognition of deferred tax liabilities for the acquired intangible assets, including software, which are not deductible for income tax purposes. None of the goodwill is deductible for income tax purposes.

Intangible assets consisted of the following as of June 30, 2012:

	Weighted Average			Accumulated		Net
	Amortization Period	Cost		Amortization		Value
	(in years)	($ thousands)
Definite-lived intangible assets
Customer relationships	15	$	33,600	$	130	$	33,470
Driver network	3	3,300		70		3,230
	14	36,900		200		36,700
Indefinite-lived intangible assets
Trade name	N/A	31,700		N/A		31,700
Other	N/A	2,822		N/A		2,822
		34,522		N/A		34,522
Total intangible assets	N/A	$	71,422	$	200	$	71,222

Intangible assets, except for the $2.8 million of other indefinite-lived amounts, were acquired in conjunction with the June 2012 acquisition of Panther. The fair values of goodwill and the identifiable intangible assets associated with the Panther acquisition and the applicable amortization periods are preliminary until the final assessment of values has been completed and could change significantly. Intangible amortization expense totaled $0.2 million (all of which pertained to the intangibles acquired in the Panther acquisition) for the three- and six-month periods ended June 30, 2012. Amortization expense on intangible assets (excluding acquired software which is reported within property, plant and equipment) is expected to approximate $2.5 million for 2012 and is anticipated to range between $3 million and $4 million per year for the years ended December 31, 2013 through 2017. Acquired software is expected to be amortized on a straight-line basis over seven years, resulting in approximately $5 million of amortization expense per year.