Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Note B: Goodwill and Other Intangible Assets

The following table shows the changes in goodwill by reportable segment and in total. The information has been reclassified to conform to the presentation of the Corporation’s current reportable segments. For further information on the reorganization, please see Note O.

December 31	Mid- America Group			Southeast Group		West Group			Total
(add 000)	2016
Balance at beginning of period	$	281,403		$	50,346	$	1,736,486		$	2,068,235
Acquisitions		—			—		91,174			91,174
Divestitures		—			—		(72	)		(72	)
Balance at end of period	$	281,403		$	50,346	$	1,827,588		$	2,159,337

	2015
Balance at beginning of period	$	282,117		$	50,346	$	1,736,336		$	2,068,799
Acquisitions		—			—		8,464			8,464
Adjustments to purchase price allocations		—			—		(3,096	)		(3,096	)
Divestitures		(714	)		—		(5,218	)		(5,932	)
Balance at end of period	$	281,403		$	50,346	$	1,736,486		$	2,068,235

Intangible assets subject to amortization consist of the following:

December 31	Gross Amount		Accumulated Amortization			Net Balance
(add 000)	2016
Noncompetition agreements	$	6,274	$	(6,106	)	$	168
Customer relationships		45,755		(13,636	)		32,119
Operating permits		455,095		(19,493	)		435,602
Use rights and other		16,946		(9,239	)		7,707
Trade names		12,800		(5,681	)		7,119
Total	$	536,870	$	(54,155	)	$	482,715

	2015
Noncompetition agreements	$	6,274	$	(6,069	)	$	205
Customer relationships		35,805		(10,448	)		25,357
Operating permits		450,419		(12,294	)		438,125
Use rights and other		16,746		(8,030	)		8,716
Trade names		12,800		(3,408	)		9,392
Total	$	522,044	$	(40,249	)	$	481,795

Intangible assets deemed to have an indefinite life and not being amortized consist of the following:

December 31	Building Materials Business		Magnesia Specialties		Total
(add 000)	2016
Operating permits	$	6,600	$	—	$	6,600
Use rights		19,152		—		19,152
Trade names		280		2,565		2,845
Total	$	26,032	$	2,565	$	28,597
	2015
Operating permits	$	6,600	$	—	$	6,600
Use rights		19,312		—		19,312
Trade names		280		2,565		2,845
Total	$	26,192	$	2,565	$	28,757

During 2016, the Corporation acquired $15,134,000 of intangibles, consisting of the following:

(add 000, except year data)	Amount		Weighted-average amortization period
Subject to amortization:
Customer relationships	$	9,950	10.3 years
Operating permits		4,984	40.6 years
Other		200	1.5 years
Total	$	15,134	20.2 years

Total amortization expense for intangible assets for the years ended December 31, 2016, 2015 and 2014 was $13,922,000, $13,962,000 and $9,311,000, respectively.

The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

(add 000)
2017	$	14,375
2018		13,417
2019		12,107
2020		11,727
2021		11,021
Thereafter		420,068
Total	$	482,715

- 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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