IDENTIFIABLE INTANGIBLE ASSETS, NONCURRENT LIABILITY AND GOODWILL

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

IDENTIFIABLE INTANGIBLE ASSETS, NONCURRENT LIABILITY AND GOODWILL

Identifiable Intangible Assets and Noncurrent Liability. Identifiable intangible assets and the noncurrent liability, which are subject to amortization, were as follows:



	June 30, 2014
	Useful lives (In years)	Gross carrying amount		Accumulated amortization			Net
	(Dollars in thousands)
Favorable gas gathering contracts	18.7	$	24,195	$	(7,185	)	$	17,010
Contract intangibles	12.5	426,464		(59,318		)	367,146
Rights-of-way	24.2	111,975		(10,052		)	101,923
Total amortizable intangible assets		$	562,634	$	(76,555	)	$	486,079

Unfavorable gas gathering contract	10.0	$	10,962	$	(5,007	)	$	5,955



	December 31, 2013
	Useful lives (In years)	Gross carrying amount		Accumulated amortization			Net
	(Dollars in thousands)
Favorable gas gathering contracts	18.7	$	24,195	$	(6,315	)	$	17,880
Contract intangibles	12.5	426,464		(43,158		)	383,306
Rights-of-way	24.3	108,706		(7,715		)	100,991
Total amortizable intangible assets		$	559,365	$	(57,188	)	$	502,177

Unfavorable gas gathering contract	10.0	$	10,962	$	(4,588	)	$	6,374

We recognized amortization expense in revenues as follows:



	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
	(In thousands)
Amortization expense – favorable gas gathering contracts	$	(436	)	$	(527	)	$	(870	)	$	(1,099	)
Amortization expense – unfavorable gas gathering contract	211			277			419			569
Amortization of favorable and unfavorable contracts	$	(225	)	$	(250	)	$	(451	)	$	(530	)

We recognized amortization expense in costs and expenses as follows:



	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
	(In thousands)
Amortization expense – contract intangibles	$	8,198	$	7,421	$	16,160	$	12,709
Amortization expense – rights-of-way	1,178		872		2,337		1,680

The estimated aggregate annual amortization of intangible assets and noncurrent liability expected to be recognized for the remainder of 2014 and each of the four succeeding fiscal years follows.



	Assets		Liability
	(In thousands)
2014	$	20,589	$	806
2015	43,872		1,650
2016	44,114		1,571
2017	42,846		1,438
2018	43,115		490

Goodwill. We evaluate goodwill for impairment annually on September 30. We also evaluate goodwill whenever events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. There have been no impairments of goodwill.

- 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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