Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Our goodwill balance as of June 30, 2017 and December 31, 2016 of $41.1 million arose from previous acquisitions as described in our Annual Report on Form 10-K for the year ended December 31, 2016. There have been no changes in the carrying amounts of goodwill.

Other intangible assets

Our other intangible assets arose primarily from acquisitions described in our Annual Report on Form 10-K for the year ended December 31, 2016 and consist of a brand, the carrier network, distributor relationships, customer relationships, noncompete agreements and capitalized software. Finite-lived intangible assets are amortized over their useful lives from two to fifteen years.

Major classes of intangible assets as of June 30, 2017 consisted of the following ($ in thousands):



	Weighted-average Amortization (years)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, net
Brand	14.1	$	1,377	$	(353	)	$	1,024
Carrier network	5.0	40		(40		)	—
Distributor relationships	6.8	4,059		(3,130		)	929
Noncompete agreements	4.7	987		(972		)	15
Customer relationships	5.8	1,484		(1,140		)	344
Capitalized software	6.7	8,571		(3,999		)	4,572
Total intangible assets		$	16,518	$	(9,634	)	$	6,884

Major classes of intangible assets as of December 31, 2016 consisted of the following ($ in thousands):



	Weighted-average Amortization (years)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, net
Brand	14.1	$	1,377	$	(311	)	$	1,066
Carrier network	5.0	40		(40		)	—
Distributor relationships	6.8	4,059		(2,831		)	1,228
Noncompete agreements	4.7	987		(881		)	106
Customer relationships	5.8	1,484		(1,125		)	359
Capitalized software	6.7	8,571		(3,423		)	5,148
Total intangible assets		$	16,518	$	(8,611	)	$	7,907

Amortization expense for the three months ended June 30, 2017 and 2016 was $512,000 and $557,000, respectively, and for the six months ended June 30, 2017 and 2016 was $1.0 million, and $1.1 million, respectively.

Estimated annual pretax amortization of intangible assets for the remainder of 2017 and in each of the next five years and thereafter are as follows ($ in thousands):



Remainder of 2017	$	942
2018	1,725
2019	1,338
2020	1,338
2021	685
2022	114
Thereafter	742
Total	$	6,884

- 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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