Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

As of December 31, 2021 and 2020, the Company had recorded on its Consolidated Balance Sheets $237.4 million of goodwill.

As of November 30, 2021, the Company elected to perform a qualitative assessment for its annual goodwill impairment test of its two reporting units. The qualitative assessment included the Company’s consideration of, among other things, the overall macroeconomic conditions, industry and market considerations, current discount rates and valuation multiples, overall financial performance and other relevant company specific events. Based on the assessment of these items, the Company concluded that it is more likely than not that the fair value of the two reporting units exceeded their respective carrying amounts. Accordingly, there were no indicators of impairment and the quantitative impairment test was not performed.

As of November 30, 2020, the Company performed a quantitative annual goodwill impairment test for its two reporting units. The results of the quantitative goodwill impairment test indicated that the fair value of the Company's reporting units exceeded their carrying amounts. The fair value measurement of the reporting units was derived based on judgments and assumptions the Company believes market participants would use in assessing the fair value of the reporting units. These judgments and assumptions included the valuation premise, use of a discounted cash flow model to estimate fair value under an income approach and inputs to the valuation model. The inputs included the Company’s five-year financial plan operating results, including operating revenues, the long-term outlook for growth in natural gas and NGLs demand, measures of the risk-free rate, equity premium and systematic risk used in the calculation of the applied discount rate under the capital asset pricing model and views regarding future market conditions, among others. The reasonableness of fair value estimates under the income approach were supported by a market approach under which the Company applied EBITDA multiples derived from publicly-available information to each reporting unit's EBITDA.

No impairment charges related to goodwill were recorded for any of the Company's reporting units during 2021, 2020 or 2019.

Intangible Assets

The following table contains information regarding the Company's intangible assets, which includes customer relationships acquired as part of its acquisitions (in millions):


	As of December 31,
	2021		2020
Gross carrying amount	$	59.4	$	59.4
Accumulated amortization	(17.2)		(15.3)
Net carrying amount	$	42.2	$	44.1

For each of the years ended December 31, 2021, 2020 and 2019, amortization expense for intangible assets was $1.9 million and was recorded in Depreciation and amortization on the Consolidated Statements of Income. Amortization expense for the next five years and in total thereafter as of December 31, 2021, is expected to be as follows (in millions):


2022	$	1.9
2023	1.9
2024	2.0
2025	2.0
2026	2.0
Thereafter	32.4
Total	$	42.2

The weighted-average remaining useful life of the Company's intangible assets as of December 31, 2021, was 22 years.