Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

(3) Goodwill and Intangible Assets

Goodwill Impairments

Goodwill Impairment Analysis for the Year Ended December 31, 2020

During the first quarter of 2020, we determined that a sustained decline in our unit price and weakness in the overall energy sector, driven by low commodity prices and lower consumer demand due to the COVID-19 pandemic, caused a change in circumstances warranting an interim impairment test. Based on these triggering events, we performed a quantitative goodwill impairment analysis on the remaining goodwill in the Permian reporting unit. Based on this analysis, a goodwill impairment loss for our Permian reporting unit in the amount of $184.6 million was recognized as an impairment loss on the consolidated statement of operations for the year ended December 31, 2020. As a result of this impairment loss, we have no goodwill remaining as of December 31, 2020.

Goodwill Impairment Analysis for the Year Ended December 31, 2019

During the first quarter of 2019, we recognized a $186.5 million goodwill impairment related to goodwill that had been reallocated from our Corporate reporting unit to our Louisiana reporting unit as a result of the Merger.

During the fourth quarter of 2019, we performed a quantitative analysis as of October 31, 2019 for our annual goodwill impairment test. Subsequent to October 31, 2019, we determined that due to a significant decline in our common unit price and the expected reduction in our cash distribution paid to common unitholders, which was announced in January 2020, a change in circumstances had occurred that warranted an additional quantitative impairment test. We recorded a goodwill impairment loss of $125.7 million and $813.4 million in our North Texas and Oklahoma reporting units, respectively. These amounts are

included in impairments in the consolidated statement of operations for the year ended December 31, 2019. The goodwill for our North Texas and Oklahoma reporting units primarily related to the goodwill reallocated from our Corporate reporting unit as a result of the Merger in January 2019.

Intangible Assets

Intangible assets associated with customer relationships are amortized on a straight-line basis over the expected period of benefits of the customer relationships, which range from 10 to 20 years. The weighted average amortization period for intangible assets is 14.9 years.

The following table represents our change in carrying value of intangible assets for the periods stated (in millions):

	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Year Ended December 31, 2021
Customer relationships, beginning of period	$	1,794.2	$	(668.8)	$	1,125.4
Customer relationships obtained from acquisition of business	50.6		—		50.6
Amortization expense	—		(126.3)		(126.3)
Customer relationships, end of period	$	1,844.8	$	(795.1)	$	1,049.7
Year Ended December 31, 2020
Customer relationships, beginning of period	$	1,795.8	$	(545.9)	$	1,249.9
Amortization expense	—		(123.5)		(123.5)
Retirements (1)	(1.6)		0.6		(1.0)
Customer relationships, end of period	$	1,794.2	$	(668.8)	$	1,125.4
Year Ended December 31, 2019
Customer relationships, beginning of period	$	1,795.8	$	(422.2)	$	1,373.6
Amortization expense	—		(123.7)		(123.7)
Customer relationships, end of period	$	1,795.8	$	(545.9)	$	1,249.9

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(1)Intangible assets retired as a result of the disposition of certain non-core assets.

The following table summarizes our estimated aggregate amortization expense for the next five years and thereafter (in millions):

2022	$	127.6
2023	127.6
2024	127.6
2025	110.3
2026	106.4
Thereafter	450.2
Total	$	1,049.7