Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Goodwill

As of December 31, 2019, the goodwill balance of $4.4 million related to the Turner and Red Rock acquisitions. There were no indicators of impairment identified as a result of the Company's review of events and circumstances related to its goodwill subsequent to the acquisitions. Based on our annual impairment testing performed on November 1st, no impairment was recorded. Refer to Note 7 — "Acquisitions" for additional information regarding the acquisitions.

Intangible Assets

As of December 31, 2019 and December 31, 2018 intangible assets consisted of the following (in thousands):

	December 31, 2019						December 31, 2018
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
INDEFINITE LIVED INTANGIBLE ASSETS:
CP Water Certificate of Convenience & Necessity service area	$	1,532			$	1,532	$	1,532			$	1,532
Intangible trademark	13				13		13				13
Franchise contract rights	129				129		134				134
Organizational costs	67				67		66				66
	1,741		—		1,741		1,745		—		1,745
DEFINITE LIVED INTANGIBLE ASSETS:
Acquired ICFAs	17,978		(12,568)		5,410		17,978		(12,154)		5,824
Sonoran contract rights	7,406		(2,003)		5,403		7,406		(2,003)		5,403
	25,384		(14,571)		10,813		25,384		(14,157)		11,227
Total intangible assets	$	27,125	$	(14,571)	$	12,554	$	27,129	$	(14,157)	$	12,972

A Certificate of Convenience & Necessity ("CC&N") is a permit issued by the ACC allowing a public service corporation to serve a specified area, and preventing other public service corporations from offering the same services within the specified area. The CP Water CC&N intangible asset was acquired through the acquisition of CP Water Company in 2006. CC&N permits are expected to be renewable indefinitely.

Franchise contract rights and organizational costs were acquired as part of the Red Rock acquisition. Franchise contract rights are agreements with Pima and Pinal counties that allow the Company to place infrastructure in public right-of-way and permits expected to be renewable indefinitely. Organizational costs represent fees paid to federal or state governments for the privilege of incorporation and expenditures incident to organizing the corporation and preparing it to conduct business.

Acquired ICFAs and contract rights related to our 2005 acquisition of Sonoran Utility Services, LLC assets are amortized when cash is received in proportion to the amount of total cash expected to be received under the underlying agreements. Due to the uncertainty of the timing of when cash will be received under ICFA agreements and contract rights, we cannot reliably estimate when the remaining intangible assets' amortization will be recorded. Amortization in the amount of $0.4 million and zero was recorded for these balances for the years ended December 31, 2019 and 2018, respectively.