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AMORTIZING INTANGIBLE ASSETS AND UNFAVORABLE GAS GATHERING CONTRACT
12 Months Ended
Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]  
AMORTIZING INTANGIBLE ASSETS AND UNFAVORABLE GAS GATHERING CONTRACT

5. AMORTIZING INTANGIBLE ASSETS AND UNFAVORABLE GAS GATHERING CONTRACT

Details regarding our intangible assets and the unfavorable gas gathering contract (included in other noncurrent liabilities), all of which are subject to amortization, follow.

 

 

December 31, 2017

 

 

 

Gross carrying amount

 

 

Accumulated amortization

 

 

Net

 

 

 

(In thousands)

 

Favorable gas gathering contracts

 

$

24,195

 

 

$

(12,350

)

 

$

11,845

 

Contract intangibles

 

 

278,448

 

 

 

(117,821

)

 

 

160,627

 

Rights-of-way

 

 

159,986

 

 

 

(31,113

)

 

 

128,873

 

Total intangible assets

 

$

462,629

 

 

$

(161,284

)

 

$

301,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unfavorable gas gathering contract

 

$

10,962

 

 

$

(9,074

)

 

$

1,888

 

 

 

 

December 31, 2016

 

 

 

Gross carrying amount

 

 

Accumulated amortization

 

 

Net

 

 

 

(In thousands)

 

Favorable gas gathering contracts

 

$

24,195

 

 

$

(10,795

)

 

$

13,400

 

Contract intangibles

 

 

426,464

 

 

 

(146,468

)

 

 

279,996

 

Rights-of-way

 

 

153,015

 

 

 

(24,959

)

 

 

128,056

 

Total intangible assets

 

$

603,674

 

 

$

(182,222

)

 

$

421,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unfavorable gas gathering contract

 

$

10,962

 

 

$

(6,916

)

 

$

4,046

 

In December 2017, in connection with certain strategic initiatives, we evaluated certain long-lived assets relating to the Bison Midstream system within the Williston Basin reporting segment (see Note 4). In connection with this evaluation, we evaluated the related intangible assets associated therewith for impairment consisting of contract intangible assets and rights-of-way intangible assets. We concluded the contract intangible assets were also impaired and, as a result, we recorded an impairment charge of $85.2 million.

During the fourth quarter of 2015, we identified a need to evaluate the goodwill associated with certain of our gathering systems (see Note 6). In connection with these evaluations, we also evaluated the related intangible assets associated therewith for impairment and concluded that no impairment was necessary.

We recognized amortization expense in other revenues as follows:

 

 

 

Year ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(In thousands)

 

Amortization expense – favorable gas gathering contracts

 

$

(1,555

)

 

$

(1,261

)

 

$

(1,478

)

Amortization expense – unfavorable gas gathering

    contract

 

 

2,158

 

 

 

839

 

 

 

692

 

 

We recognized amortization expense in costs and expenses as follows:

 

 

 

Year ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(In thousands)

 

Amortization expense – contract intangibles

 

$

34,202

 

 

$

35,416

 

 

$

35,339

 

Amortization expense – rights-of-way

 

 

6,153

 

 

 

6,053

 

 

 

5,863

 

 

The estimated aggregate annual amortization expected to be recognized for as of December 31, 2017 for each of the five succeeding fiscal years follows.

 

 

 

Intangible assets

 

 

Unfavorable gas gathering contract

 

 

 

(In thousands)

 

2018

 

$

34,026

 

 

$

1,888

 

2019

 

 

33,139

 

 

 

 

2020

 

 

32,963

 

 

 

 

2021

 

 

29,271

 

 

 

 

2022

 

 

26,204