Intangible Assets

6 Months Ended

Jun. 30, 2011

Intangible Assets [Abstract]

Intangible Assets

Note 5. Intangible Assets

Intangible assets as of June 30, 2011 and December 31, 2010 were (in thousands):

	June 30,			December 31,
	2011			2010
Customer Relationship:
Gross carrying value	$	275,324		$	275,324
Accumulated amortization		(96,961	)		(87,617	)
Trade Name:
Gross carrying value		181,037			181,037
Intangible assets, net	$	359,400		$	368,744

For all periods ending on or after December 31, 2007, amortization of intangibles consists primarily of amortization of $261.2 million gross carrying value of definite-lived intangible assets recognized under purchase accounting in connection with Swift Transportation Co.’s going private in the 2007 transactions in which Swift Corporation acquired Swift Transportation Co. Intangible assets acquired as a result of the Swift Transportation Co. acquisition include trade name, customer relationships, and owner-operator relationships. Amortization of the customer relationship acquired in the going private transaction is calculated on the 150% declining balance method over the estimated useful life of 15 years. The customer relationship contributed to the Company at May 9, 2007 is amortized using the straight-line method over 15 years. The owner-operator relationship was amortized using the straight-line method over three years and was fully amortized at December 31, 2010. The trade name has an indefinite useful life and is not amortized, but rather is tested for impairment at least annually, unless events occur or circumstances change between annual tests that would more likely than not reduce the fair value.

Amortization of intangibles for three months ended June 30, 2011 and 2010 is comprised of $4.3 million and $4.9 million respectively, related to intangible assets recognized in conjunction with the 2007 going private transaction and $0.3 million in each period related to previous intangible assets existing prior to the 2007 going private transaction. Amortization of intangibles for six months ended June 30, 2011 and 2010 is comprised of $8.8 million and $10.1 million respectively, related to intangible assets recognized in conjunction with the 2007 going private transaction and $0.6 million in each period related to previous intangible assets existing prior to the 2007 going private transaction.