Intangible Assets, Goodwill And Other Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Goodwill And Other Assets

Intangible Assets, Goodwill and Other Assets

Intangible Assets

The following table reflects the components of intangible assets being amortized at December 31, 2016 and 2015:



		December 31, 2016						December 31, 2015
	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	$	89,756	$	4,898	$	94,654	$	86,285	$	8,369
Licensing agreements	6	38,678		34,204		4,474		38,678		31,694		6,984
Segment total		133,332		123,960		9,372		133,332		117,979		15,353
Supply & Logistics:
Customer relationships	5	35,430		33,676		1,754		35,430		32,044		3,386
Intangibles associated with lease	15	13,260		4,459		8,801		13,260		3,986		9,274
Segment total		48,690		38,135		10,555		48,690		36,030		12,660
Marine contract intangibles	5	27,000		6,300		20,700		27,000		900		26,100
Offshore pipeline contract intangibles	19	158,101		11,788		146,313		158,101		3,467		154,634
Other	5	28,569		10,622		17,947		22,819		8,120		14,699
Total		$	395,692	$	190,805	$	204,887	$	389,942	$	166,496	$	223,446

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. The marine contract intangibles relate to the contracts we assumed in the purchase of the M/T American Phoenix in November 2014.

The offshore pipeline contract intangibles relate to customer contracts surrounding certain transportation agreements with producers in the Lucius production area in Southeast Keathley Canyon, which support our SEKCO pipeline identified in connection with our purchase price allocation surrounding the Enterprise Acquisition.

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, marine contract, offshore pipeline contract intangibles and other intangible assets are being amortized on a straight-line basis. Amortization expense on intangible assets was $24.3 million, $20.0 million and $13.4 million for the years ended December 31, 2016, 2015 and 2014, respectively.

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



	2017		2018		2019		2020		2021
Refinery Services:
Customer relationships	$	2,737	$	2,161	$	—	$	—	$	—
Licensing agreements	2,324		2,150		—		—		—
Supply and Logistics:
Customer relationships	1,407		41		39		38		37
Intangibles associated with lease	474		474		474		474		474
Marine contract intangibles	5,400		5,400		5,400		4,500		—
Offshore pipeline contract intangibles	8,321		8,321		8,321		8,321		8,321
Other	2,969		2,943		2,921		2,908		1,779
Total	$	23,632	$	21,490	$	17,155	$	16,241	$	10,611

Goodwill

The carrying amount of goodwill by business segment at both December 31, 2016 and 2015 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,
	2016		2015
CO₂ volumetric production payments, net of amortization	$	3,503	$	7,413
Deferred marine charges, net ⁽¹⁾	27,710		23,646
Other deferred costs and deposits	25,398		27,633
Other assets, net of amortization	$	56,611	$	58,692


(1)	See discussion of deferred charges on marine transportation assets in the Summary of Accounting Policies (Note 2)

The CO₂ assets are being amortized on a units-of-production method. We recorded amortization of $3.9 million in 2016, $5.9 million in 2015 and $4.2 million in 2014.

- 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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