Acquired Intangibles

The Company has recognized assets for acquired above market-priced coal supply agreements and acquired mine permits and liabilities for acquired below market-priced coal supply agreements. The coal supply agreements were valued based on the present value of the difference between the expected net contractual cash flows based on the stated contract terms, and the estimated net contractual cash flows derived from applying forward market prices at the Merger or acquisition date for new contracts of similar terms and conditions. The acquired mine permits were valued based on the replacement cost and lost profits method as of the Merger date. The balances and respective balance sheet classifications of such assets and liabilities as of March 31, 2020 and December 31, 2019, net of accumulated amortization, are set forth in the following tables:



	March 31, 2020
	Assets ⁽¹⁾		Liabilities ⁽²⁾			Net Total
Coal supply agreements, net	$	546	$	(3,183	)	$	(2,637	)
Acquired mine permits, net	115,082		—			115,082
Total	$	115,628	$	(3,183	)	$	112,445



	December 31, 2019
	Assets ⁽¹⁾		Liabilities ⁽²⁾			Net Total
Coal supply agreements, net	$	917	$	(6,018	)	$	(5,101	)
Acquired mine permits, net	124,228		—			124,228
Total	$	125,145	$	(6,018	)	$	119,127

⁽¹⁾Included within other acquired intangibles, net of accumulated amortization on the Company’s Condensed Consolidated Balance Sheets.

⁽²⁾Included within other non-current liabilities on the Company’s Condensed Consolidated Balance Sheets.

During the three months ended March 31, 2020, the Company recorded a long-lived asset impairment which reduced the carrying value of acquired mine permits, net, by $5,818. Refer to Note 8.

The acquired mine permits are amortized over the estimated life of the associated mine. The coal supply agreement assets and liabilities are amortized over the actual number of tons shipped over the life of each contract. Amortization of mine permits acquired as a result of the Merger was $3,328 and $5,941 for the three months ended March 31, 2020 and 2019 which is reported within amortization of acquired intangibles, net in the Condensed Consolidated Statements of Operations. Amortization of above-market coal supply agreements was $372 and $757, and amortization of below-market coal supply agreements was ($2,835) and ($13,381), resulting in a net (income) expense of ($2,463) and ($12,624) for the three months ended March 31, 2020 and 2019, respectively, which is reported within amortization of acquired intangibles, net in the Condensed Consolidated Statements of Operations.