Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill And Other Intangible Assets [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill relates to the following segments (in thousands):



	December 31, 2014		December 31, 2013
Crude	$	36,116	$	28,322
SemGas	13,052		23,839
SemMexico	9,158		9,860
Total Goodwill	$	58,326	$	62,021

In addition to the amounts in the table above, approximately $71.4 million of our investment in NGL Energy and $31.0 million of our investment in Glass Mountain represents equity method goodwill. Equity method goodwill is not amortized and is tested for impairment with the equity method investment in accordance with ASC 323.

We assess our goodwill for impairment at least annually as of October 1. Our goodwill impairment analysis performed as of October 1, 2014, did not result in an impairment charge nor did our analysis reflect any reporting units at risk, and subsequent to that date, no event has occurred indicating that the implied fair value of each of our reporting units (including its inherent goodwill) is less than the carrying value of its net assets.

Changes in goodwill balances during the period from December 31, 2011 to December 31, 2014 are shown below (in thousands):



Balance, December 31, 2011	$	9,453
Currency translation adjustments	431
Balance, December 31, 2012	9,884
Barcas acquisition (Note 6)	28,322
MMGS acquisition (Note 6)	23,839
Currency translation adjustments	(24		)
Balance, December 31, 2013	62,021
Crude oil trucking asset acquisition (Note 6)	7,892
MMGS purchase price allocation adjustment (Note 6)	(10,787		)
Barcas purchase price allocation adjustment (Note 6)	(98		)
Currency translation adjustments	(702		)
Balance, December 31, 2014	$	58,326

For U.S. federal income tax purposes, goodwill is amortized on a straight-line basis over 15 years.

Other intangible assets

Other intangible assets relate to the following segments (in thousands):



	December 31, 2014		December 31, 2013
Crude	$	16,640	$	5,775
SemGas	152,383		163,144
SemMexico	4,016		5,888
Corporate and other	26		31
Total other intangible assets	$	173,065	$	174,838

Changes in other intangible asset balances are shown below (in thousands):



Balance, December 31, 2011	$	8,950
Amortization	(2,017		)
Currency translation adjustments	652
Balance, December 31, 2012	7,585
Amortization	(6,018		)
Barcas acquisition (Note 6)	6,930
MMGS acquisition (Note 6)	166,332
Currency translation adjustments	9
Balance, December 31, 2013	174,838
Amortization	(15,875		)
Crude oil trucking asset acquisition (Note 6)	17,010
MMGS purchase price allocation adjustment (Note 6)	(2,313		)
Barcas purchase price allocation adjustment (Note 6)	(50		)
Currency translation adjustments	(545		)
Balance, December 31, 2014	$	173,065

Our other intangible assets consist primarily of customer relationships at our Crude, SemGas and SemMexico segments and unpatented technology of our SemMexico segment, which represented $171.6 million and $1.3 million, respectively, of the balance at December 31, 2014. These assets may be subject to impairments in the future if we are unable to maintain the relationships with the customers to which the assets relate.

For the year ended December 31, 2014, we recorded a $17.0 million customer contract intangible asset related to the crude oil trucking asset acquisition. The intangible is being amortized in proportion with the expected revenues associated with the contract over 20 years.

We estimate that future amortization of other intangible assets will be as follows (in thousands):



For year ending:
December 31, 2015	$	10,334
December 31, 2016	10,928
December 31, 2017	11,011
December 31, 2018	10,918
December 31, 2019	10,317
Thereafter	119,557
Total estimated amortization expense	$	173,065

- 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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