Intangible Assets, Goodwill And Other Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Goodwill And Other Assets

9. Intangible Assets, Goodwill and Other Assets

Intangible Assets

The following table reflects the components of intangible assets being amortized at December 31, 2012 and 2011:



		December 31, 2012						December 31, 2011
	Weighted Amortization Period in Years	Gross Carrying Amount		Accumulated Amortization		Carrying Value		Gross Carrying Amount		Accumulated Amortization		Carrying Value
Refinery Services:
Customer relationships	5	$	94,654	$	69,167	$	25,487	$	94,654	$	62,111	$	32,543
Licensing agreements	6	38,678		22,892		15,786		38,678		19,476		19,202
Supplier relationships	2	36,469		36,469		—		36,469		34,105		2,364
Segment total		169,801		128,528		41,273		169,801		115,692		54,109
Supply & Logistics:
Customer relationships	5	35,430		26,403		9,027		35,430		23,584		11,846
Intangibles associated with lease	15	13,260		2,565		10,695		13,260		2,092		11,168
Trade names	4	18,888		18,888		—		18,888		17,048		1,840
Segment total		67,578		47,856		19,722		67,578		42,724		24,854
Other	5	18,932		4,862		14,070		17,292		2,899		14,393
Total		$	256,311	$	181,246	$	75,065	$	254,671	$	161,315	$	93,356

The licensing agreements referred to in the table above relate to the agreements we have with refiners to provide services. The supply and logistics lease relates to a terminal facility in Shreveport, Louisiana.

We are recording amortization of our intangible assets based on the period over which the asset is expected to contribute to our future cash flows. Generally, the contribution to our cash flows of the customer and supplier relationships, licensing agreements and trade name intangible assets is expected to decline over time, such that greater value is attributable to the periods shortly after the acquisition was made. The supply and logistics lease and other intangible assets are being amortized on a straight-line basis. Amortization expense on intangible assets was $19.9 million, $30.9 million and $26.8 million for the years ended December 31, 2012, 2011 and 2010, respectively.

The following table reflects our estimated amortization expense for each of the five subsequent fiscal years:



	2013		2014		2015		2016		2017
Refinery Services:
Customer relationships	$	7,116	$	5,597	$	4,405	$	3,471	$	2,737
Licensing agreements	3,163		2,928		2,711		2,510		2,324
Supply and Logistics:
Customer relationships	2,165		1,660		1,275		981		757
Intangibles associated with lease	474		474		474		474		474
Other	1,704		1,685		1,671		1,638		1,619
Total	$	14,622	$	12,344	$	10,536	$	9,074	$	7,911

In the first quarter of 2011, we adjusted the useful lives of our supply and logistics trade names. As a result of this change in the amortization period of our assets, operating income and net income attributable to us for 2011 decreased $7.7 million, or $0.11 per common unit. At December 31, 2012, our supply and logistics trade names were fully amortized.

Goodwill

The carrying amount of goodwill by business segment at both December 31, 2012 and 2011 was $301.9 million in refinery services and $23.1 million in supply and logistics. We have not recognized any impairment losses related to goodwill for any of the periods presented.

Other Assets

Other assets consisted of the following:



	December 31,
	2012		2011
CO₂ volumetric production payments, net of amortization	$	8,320	$	12,158
Other deferred costs and deposits	25,298		17,848
Other assets, net of amortization	$	33,618	$	30,006

The CO₂ assets are being amortized on a units-of-production method. We recorded amortization of $3.8 million in 2012, $3.7 million in 2011 and $4.3 million in 2010.

- 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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