Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

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, $13,400 related to the purchase premium for customer relationships and other intangibles of $13,224 as of December 31, 2019. Other intangibles primarily consist of $4,128 which was paid for service area and water rights related to CLWSC, $3,831 for infrastructure related to the Cupertino service concession arrangement, $1,400 for customer relationships and $1,040 incurred in conjunction with Valley Water water contracts related to the operation of SJWC. All intangible assets are recorded at cost and all are being amortized using the straight-line method over the legal or estimated economic life of the asset ranging from 5 to 70 years.

Amortization expense for the intangible assets was $745, $647 and $616 for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization expense for 2020 through 2024 is anticipated to be $745 per year.

The costs of intangible assets as of December 31, 2019 and 2018 are as follows:

	2019		2018
Concession fees	$	6,800	6,800
Purchase premium customer relationships	13,400		—
Other intangibles	13,224		8,999
Intangible assets	33,424		15,799
Less: Accumulated amortization
Concession fees	6,052		5,780
Other intangibles	7,127		2,960
Net intangible assets	$	20,245	7,059