Acquisitions

3 Months Ended

Mar. 31, 2012

Acquisitions [Abstract]

ACQUISITIONS

4. ACQUISITIONS

On May 11, 2011, the Company acquired three short-line freight railroads in the state of Alabama for a total purchase price of $12.7 million. The acquisition was funded from existing cash on hand. The three railroads, known individually as the Three Notch Railroad (TNHR), the Wiregrass Central Railroad (WGCR), and the Conecuh Valley Railroad (COEH), comprise approximately 70 miles and primarily haul agricultural and chemical products. The railroads were acquired from affiliates of Gulf and Ohio Railways, Inc. The results of operations of the railroads have been included in the Company’s consolidated financial statements since May 11, 2011, the acquisition date.

In accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations Topic, the acquisition was accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed were recorded at their estimated fair value.

The allocation of purchase price is as follows (in thousands):

Intangible assets	$	1,212
Property, plant and equipment		11,645
Total assets acquired		12,857
Environmental remediation liabilities		(141	)
Total liabilities assumed		(141	)
Purchase price	$	12,716

Definite-lived intangible assets were assigned the following amounts and weighted average amortization periods (dollars in thousands):

	Value Assigned		Weighted Average  Life (Years)
Customer relationships	$	620		10
Lease right of way	$	592		15