Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2017

6. Intangible Assets and Goodwill

Intangible assets are recorded at cost, less accumulated amortization. Amortization of intangible assets with finite lives is provided for over their estimated useful lives on a straight-line basis. The life of the trade names are indefinite. Intangible assets as of September 30, 2017 consisted of the following (in thousands):


	Amortization	Gross		Accumulated		Net
	Period	Amount		Amortization		Amount
Trade names	Indefinite	$	66,087	$	—	$	66,087
Customer relationships	7 to 15 Years		35,150		10,905		24,245
Non-compete agreements	3 Years		138		56		82
Total		$	101,375	$	10,961	$	90,414

Intangible assets as of December 31, 2016 consisted of the following (in thousands):


	Amortization	Gross		Accumulated		Net
	Period	Amount		Amortization		Amount
Trade names	Indefinite	$	65,480	$	—	$	65,480
Customer relationships	7 to 15 Years		34,997		8,699		26,298
Non-compete agreements	3 Years		128		20		108
Total		$	100,605	$	8,719	$	91,886

Intangible assets as of September 30, 2016 consisted of the following (in thousands):


	Amortization	Gross		Accumulated		Net
	Period	Amount		Amortization		Amount
Trade names	Indefinite	$	63,667	$	—	$	63,667
Customer relationships	7 to 15 Years		35,968		8,017		27,951
Non-compete agreements	3 Years		150		10		140
Total		$	99,785	$	8,027	$	91,758

Amortization expense related to the intangible assets amounted to approximately $0.7 million and $0.8 million for the three months ended September 30, 2017 and 2016, respectively. Amortization expense related to the intangible assets amounted to approximately $2.2 million and $2.0 million for the nine months ended September 30, 2017 and 2016, respectively.

As of September 30, 2017, the future amortization expense related to the finite-lived intangible assets is as follows (in thousands):


2017	Remainder of the year	$	751
2018			2,990
2019			2,968
2020			2,947
2021			2,943
Thereafter			11,728
		$	24,327

Goodwill consisted of the following as of September 30, 2017, December 31, 2016 and September 30, 2016 (in thousands):


	September 30, 2017		December 31, 2016		September 30, 2016
Beginning balance	$	8,271	$	2,286	$	2,286
Goodwill created by the RG Merger		—		3,638		4,238
Goodwill created by the acquisition of SWIMS		—		2,393		3,993
Foreign currency adjustments		200		(46)		211
Ending balance	$	8,471	$	8,271	$	10,728

There was no impairment charge recorded related to intangible assets or goodwill during the three and nine months ended September 30, 2017 and 2016.

- 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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