GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

We perform our annual goodwill impairment testing in the fourth quarter of each year. In addition to the annual impairment test, we are required to regularly assess whether a triggering event has occurred that would require interim impairment testing. We determined that the significant decline in the overall financial markets, including U.S. Concrete's market capitalization, as a result of the COVID-19 pandemic, qualified as a triggering event that warranted further analysis to determine if there was an impairment loss as of March 31, 2020. As allowed, we elected to perform a qualitative assessment for our reporting units to assess whether it was more likely than not that the goodwill was impaired as of March 31, 2020. Considering the existing excess fair value identified in our 2019 impairment assessment, our qualitative assessment included a review of our previous forecasts, assumptions and analyses in light of more current information such as: (1) projected revenues, expenses and cash flows, including the expected duration and extent of impact to our business and our customers from the COVID-19 pandemic; (2) current discount rates; (3) the reduction in our market capitalization; and (4) changes to the regulatory environment. Based on the qualitative assessment, we determined that it was more likely than not that the goodwill was not impaired; therefore, no quantitative assessment was necessary.

The accumulated impairment was as follows:



($ in millions)	March 31, 2020			December 31, 2019
Goodwill, gross	$	245.3		$	245.3
Accumulated impairment	(5.8		)	(5.8		)
Goodwill, net	$	239.5		$	239.5

Goodwill by reportable segment was as follows:



($ in millions)	March 31, 2020		December 31, 2019
Ready-mixed concrete	$	150.0	$	150.0
Aggregate products	86.2		86.2
Other non-reportable segments	3.3		3.3
Goodwill, net	$	239.5	$	239.5

Other Intangible Assets

Our purchased intangible assets were as follows:



	March 31, 2020
($ in millions)	Gross		Accumulated Amortization			Net		Weighted Average Remaining Life (In Years)
Definite-lived intangible assets
Customer relationships	$	108.5	$	(63.5	)	$	45.0	3.7
Trade names	44.5		(14.1		)	30.4		18.9
Non-competes	18.3		(15.8		)	2.5		2.3
Leasehold interests	12.5		(7.2		)	5.3		5.3
Favorable contracts	4.0		(3.9		)	0.1		0.7
Environmental credits	2.8		(0.2		)	2.6		15.8
Total definite-lived intangible assets	190.6		(104.7		)	85.9		9.5
Indefinite-lived intangible assets
Land rights⁽¹⁾	1.2		—			1.2
Total purchased intangible assets	$	191.8	$	(104.7	)	$	87.1



	December 31, 2019
($ in millions)	Gross		Accumulated Amortization			Net		Weighted Average Remaining Life (In Years)
Definite-lived intangible assets
Customer relationships	$	108.5	$	(59.7	)	$	48.8	3.9
Trade names	44.5		(13.6		)	30.9		19.1
Non-competes	18.3		(15.3		)	3.0		2.4
Leasehold interests	12.5		(6.7		)	5.8		5.4
Favorable contracts	4.0		(3.9		)	0.1		0.9
Environmental credits	2.8		(0.2		)	2.6		16.0
Total definite-lived intangible assets	190.6		(99.4		)	91.2		9.4
Indefinite-lived intangible assets
Land rights⁽¹⁾	1.2		—			1.2
Total purchased intangible assets	$	191.8	$	(99.4	)	$	92.4


(1)	Land rights will be reclassified to property, plant, and equipment upon the division of certain shared properties and settlement of the associated deferred payment.

As of March 31, 2020, the estimated remaining amortization of our definite-lived intangible assets was as follows (in millions):



2020 (remainder of the year)	$	15.6
2021	18.6
2022	12.7
2023	6.3
2024	6.0
Thereafter	26.7
Total	$	85.9

Also included in other long-term obligations and deferred credits in the accompanying condensed consolidated balance sheets were unfavorable lease intangibles with a gross carrying amount of $1.5 million as of both March 31, 2020 and December 31, 2019, and a net carrying amount of $0.4 million and $0.5 million as of March 31, 2020 and December 31, 2019, respectively. These unfavorable lease intangibles had a weighted average remaining life of 4.1 years as of March 31, 2020.

We recorded amortization expense for our definite-lived intangible assets and unfavorable lease intangibles of $5.3 million and $6.0 million for the three months ended March 31, 2020 and 2019, respectively, in our condensed consolidated statements of operations.