Note 9—Goodwill and Intangible Assets

During the years ended December 31, 2016 and 2015, the change in the carrying amount of goodwill was as follows (in thousands):



Balance at January 1, 2015	$	20,786
Acquisition of Mid Pac (1)	27,531
Impairment expense	(6,990		)
Balance at December 31, 2015	41,327
Acquisition of Wyoming Refining (1)	64,994
Mid Pac acquisition purchase price allocation adjustment (2)	(589		)
Balance at December 31, 2016	$	105,732

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(1)	Please read Note 4—Acquisitions for further discussion.


(2)	During 2016, the purchase price allocation was adjusted to record an increase to tax receivables and a decrease to goodwill of $0.6 million. The tax receivable was recorded in connection with a tax refund received by Mid Pac in the first quarter of 2016.

At September 30, 2015, we conducted an interim goodwill impairment test of our Texadian reporting unit due to (i) a reduction in the forecasted results of operations during our annual budgeting process; (ii) the decision to cancel the charter on the barges used to move crude oil from Canada to the U.S. Gulf Coast due to lower forecasted commodity prices and (iii) negative cash flows from the business during 2015. Upon completion of the goodwill impairment test, we determined the goodwill associated with the Texadian reporting unit was fully impaired resulting in a charge of $7.0 million in our consolidated statement of operations for the year ended December 31, 2015. In assessing the value of the reporting unit, we primarily used an income approach with a weighted-average discount rate of 15%. There was no impairment of goodwill for the year ended December 31, 2016.

Intangible assets consist of the following (in thousands):



	December 31,
	2016			2015
Intangible assets:
Railcar leases	$	3,249		$	3,249
Trade names and trademarks	6,267			6,267
Customer relationships	32,064			32,064
Total intangible assets	41,580			41,580
Accumulated amortization:
Railcar leases	(2,599		)	(1,950		)
Trade name and trademarks	(4,864		)	(3,540		)
Customer relationships	(4,205		)	(1,722		)
Total accumulated amortization	(11,668		)	(7,212		)
Net:
Railcar leases	650			1,299
Trade name and trademarks	1,403			2,727
Customer relationships	27,859			30,342
Total intangible assets, net	$	29,912		$	34,368

At September 30, 2015, we conducted an impairment test related to the intangible assets in our Texadian reporting unit. As of result of canceling the charter on the barges used to transport crude from Canada to the U.S. Gulf Coast in the Texadian business, we concluded that the supplier relationships intangible asset was fully impaired and recognized an impairment charge of $2.6 million in our consolidated statement of operations for the year ended December 31, 2015.

Amortization expense was approximately $4.5 million, $4.4 million and $3.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. Our intangible assets related to customer relationships and trade names have an average useful life of 13.6 years. Expected amortization expense for each of the next five years and thereafter is as follows (in thousands):



Year Ended	Amount
2017	$	3,307
2018	2,658
2019	2,658
2020	2,658
2021	2,658
Thereafter	15,973
	$	29,912