Goodwill and intangible assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Note 7 – 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 2017, the Company performed the annual goodwill impairment assessment using a qualitative approach to determine whether it is more likely than not that the fair value of goodwill is less than its carrying value. In performing the qualitative assessment, the Company identified and considered the significance of relevant key factors, events, and circumstances that affect the fair value of its goodwill. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. If the results of the qualitative assessment conclude that it is not more likely than not that the fair value of goodwill exceeds its carrying value, additional quantitative impairment testing is performed. In 2018, 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 impairment losses recognized in any of the three years ended December 31, 2018, 2017 or 2016.

Based on the results of the impairment assessments of goodwill and intangible assets performed, we concluded that the fair value of our goodwill exceeds the carrying value and that there are no impairment indicators related to intangible assets.

At December 31, 2018 the Company had $47.8 million of goodwill, of which $47.0 million is attributable to the acquisition of Airgas-Refrigerants, Inc. on October 10, 2017 and $0.4 million is attributable to the acquisition of Polar Technologies, LLC and $0.4 million is attributable to the acquisition of a supplier of refrigerants and compressed gases.

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

December 31,			2018						2017
(in thousands)	Amortization		Gross						Gross
	Period		Carrying		Accumulated				Carrying		Accumulated
	(in years)		Amount		Amortization		Net		Amount		Amortization		Net
Intangible Assets with determinable lives
Patents		5	$	386	$	380	$	6	$	386	$	374	$	12
Covenant Not to Compete		6 – 10		1,270		629		641		1,270		475		795
Customer Relationships		3 – 12		31,660		3,952		27,708		31,660		1,288		30,372
Above Market Leases		13		567		54		513		567		10		557
Trade Name		2		30		30		—		30		30		—
Licenses		10		1,000		417		583		1,000		317		683
Totals identifiable intangible assets			$	34,913	$	5,462	$	29,451	$	34,913	$	2,494	$	32,419

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. No impairments were recognized for the years ended December 31, 2018, 2017 and 2016.

The amortization of intangible assets for the years ended December 31, 2018, 2017, and 2016 were $3.0 million, $1.1 million and $0.5 million respectively. Future estimated amortization expense is as follows: 2019 - $3.0 million, 2020 - $3.0 million, 2021 - $2.9 million, 2022 - $2.9 million, 2023- $2.9 million and thereafter - $14.8 million.