5. Finite-Lived Intangible Assets and Liability

Finite-Lived Intangible Assets and Liability

The following presents the major components of the finite-lived intangible assets and liability (in thousands):



	June 30, 2017
	Weighted Average Remaining Life	Gross		Accumulated Amortization			Net
Intangible assets
Power purchase agreement	13	$	97,400	$	(13,856	)	$	83,544
Industrial revenue bond tax savings	25	12,778		(154		)	12,624
Other intangible assets	34	15,234		(785		)	14,449
Total intangible assets		$	125,412	$	(14,795	)	$	110,617
Intangible liability
Power purchase agreement	15	$	60,300	$	(7,371	)	$	52,929



	December 31, 2016
	Weighted Average Remaining Life	Gross		Accumulated Amortization			Net
Intangible assets
Power purchase agreement	13	$	97,400	$	(10,632	)	$	86,768
Other intangible assets	15	5,666		(539		)	5,127
Total intangible assets		$	103,066	$	(11,171	)	$	91,895
Intangible liability
Power purchase agreement	16	$	60,300	$	(5,637	)	$	54,663

The Company presents amortization of the PPA asset and PPA liability as an offset to electricity sales in the consolidated statements of operations, which resulted in net expense of $0.7 million and $1.5 million in electricity sales for the three and six months ended June 30, 2017 and net expense of $0.7 million and $1.5 million for the same periods in 2016. For other intangible assets, the Company includes the amortization in depreciation and accretion in the consolidated statements of operations and recorded amortization expense of $0.1 million and $0.2 million for the three and six months ended June 30, 2017 and amortization expense of $0.1 million and $0.1 million for the same periods in 2016.

The acquisition of the Broadview Project provided for future property tax savings as a result of the issuance of industrial revenue bonds during construction of the Broadview Project. The Company considered the future tax savings an intangible asset and calculated the fair value of the asset at the acquisition date. The tax savings was calculated by forecasting the difference between the property tax payments that the Broadview Projects would be liable for if the industrial revenue bond structure was not in place and the actual payments in lieu of tax. The fair value of the property tax savings was recorded to finite-lived intangible assets, net on the consolidated balance sheets at the acquisition date, and such value will be amortized to depreciation and accretion in the consolidated statements of operations over the 25 year exemption period that remains as of the acquisition date. The Company recorded amortization expense of $0.2 million and $0.2 million for the three and six months ended June 30, 2017, respectively, related to industrial revenue bond tax saving intangible asset.

The following table presents estimated future amortization for the next five years related to the PPA asset and PPA liability and other intangible assets (in thousands):



Year ended December 31,	Power purchase agreements, net		Industrial revenue bond tax savings		Other intangible assets
2017 (remainder)	$	1,543	$	193	$	305
2018	3,031		513		605
2019	3,031		513		605
2020	3,049		513		605
2021	3,031		513		605
Thereafter	16,930		10,379		11,724