GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2018

NOTE 6 – GOODWILL AND INTANGIBLE ASSETS

Goodwill represents the excess of the purchase price of all acquisitions over the estimated fair value of the net assets acquired. The Company performs an impairment test of goodwill annually as of October 1 or when impairment indicators arise. There was no goodwill impairment identified for six months ended June 30, 2018. The summary of changes in goodwill follows for the six months ended June 30, 2018 (in thousands):


	Flatbed		Specialized		Total
Goodwill balance at December 31, 2017	$	105,866	$	196,836	$	302,702
Goodwill acquired and adjustments to previously recorded goodwill		(23,955)		(14,178)		(38,133)
Foreign currency translation adjustment		—		(544)		(544)
Goodwill balance at June 30, 2018	$	81,911	$	182,114	$	264,025

Intangible assets consisted of the following at June 30, 2018 and December 31, 2017 (in thousands):


	As of June 30, 2018						As of December 31, 2017
	Intangible		Accumulated		Intangible		Intangible		Accumulated		Intangible
	Assets		Amortization		Assets, net		Assets		Amortization		Assets, net
Non-competition agreements	$	31,290	$	(9,316)	$	21,974	$	12,230	$	(5,765)	$	6,465
Customer relationships		117,226		(28,489)		88,737		69,090		(23,921)		45,169
Trade names		76,050		—		76,050		41,180		—		41,180
Foreign currency translation adjustment		96		—		96		306		—		306
Total intangible assets	$	224,662	$	(37,805)	$	186,857	$	122,806	$	(29,686)	$	93,120

As of June 30, 2018, non-competition agreements and customer relationships had weighted average remaining useful lives of 3.40 and 10.64 years, respectively.

Amortization expense for intangible assets with definite lives was $6.2 million and $1.4 million for the three months ended June 30, 2018 and 2017, respectively, and $8.1 million and $2.9 million for the six months ended June 30, 2018 and 2017, respectively. Projected amortization expense for the next five fiscal years ending December 31, 2018, 2019, 2020, 2021 and 2022 will be $16.6 million, $14.8 million, $13.6 million, $12.8 million and $12.1 million, respectively.

During the three months ended June 30, 2018, the Company recorded an impairment charge of $2.8 million related to the trade names category of intangible assets. The trade name was impaired as a result of the reorganization and merger of two of the Company’s operating companies.

- 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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