Intangible Assets

Intangible assets consist of a concession fee paid to the City of Cupertino of $6,800 for operating the City of Cupertino municipal water system and other intangibles of $7,613 as of December 31, 2017. Other intangibles consists of $3,771 which was paid for service area and water rights related to CLWSC, $2,537 for infrastructure related to the Cupertino service concession arrangement, $1,040 incurred in conjunction with SCVWD water contracts related to the operation of San Jose Water Company and $265 in other miscellaneous intangibles. All intangible assets are recorded at cost and all, except for TWA water rights, are being amortized using the straight-line method over the legal or estimated economic life of the asset ranging from 5 to 70 years. TWA water rights were not amortized as they were determined to have an indefinite useful life. On November16, 2017, SJW Group sold all of its equity interests in TWA which included all of the TWA water rights at a book value of $10,781. See Note 13, “Texas Water Alliance.”

Amortization expense for the intangible assets was $616, $530 and $453 for the years ended December 31, 2017, 2016 and 2015, respectively. Amortization expense for 2018 through 2022 is anticipated to be $616 per year.

The costs of intangible assets as of December 31, 2017 and 2016 are as follows:



	2017		2016
Concession fees	$	6,800	6,800
Other intangibles	7,613		17,189
Intangible assets	14,413		23,989
Less: Accumulated amortization
Concession fees	5,508		5,236
Other intangibles	2,585		2,412
Net intangible assets	$	6,320	16,341