Note 6 - Goodwill and intangible assets

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase method of accounting. In both 2018 and 2019, due to a significant selling price correction leading to unfavorable market conditions, the Company performed a quantitative test by weighing the results of an income-based valuation technique, the discounted cash flows method, and a market-based valuation technique, to determine its reporting units’ fair values.

There were no goodwill impairment losses recognized for the period ended March 31, 2020 and year ended December 31, 2019. Based on the results of the impairment assessments of goodwill and intangible assets performed, management concluded that the fair value of the Company’s goodwill exceeds the carrying value and that there are no impairment indicators related to intangible assets.

At March 31, 2020 and December 31, 2019 the Company had $47.8 million of goodwill.

The Company’s other intangible assets consist of the following:


		March 31, 2020						December 31, 2019
	Amortization	Gross						Gross
	Period	Carrying		Accumulated				Carrying		Accumulated
(in thousands)	(in years)	Amount		Amortization			Net	Amount		Amortization			Net
Intangible assets with determinable lives
Patents	5	$	386	$	385	$	1	$	386	$	383	$	3
Covenant not to compete	6 - 10		1,270		821		449		1,270		783		487
Customer relationships	10 - 12		31,560		7,171		24,389		31,560		6,506		25,054
Above market leases	13		567		110		457		567		99		468
Totals identifiable intangible assets		$	33,783	$	8,487	$	25,296	$	33,783	$	7,771	$	26,012

Amortization expense for the three months ended March 31, 2020 and 2019 was $0.7 million for both periods. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.