Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2012

Note B: Goodwill and Intangible Assets

The following table shows the changes in goodwill, all of which relate to the Aggregates business, by reportable segment and in total:



years ended December 31	Mideast Group			Southeast Group			West Group			Total

(add 000)	2012

Balance at beginning of period	$	122,052		$	72,073		$	422,546		$	616,671
Adjustments to purchase price allocations		---			---			(467	)		(467)
District reorganization		(9,229	)		9,229			---			---

Balance at end of period	$	112,823		$	81,302		$	422,079		$	616,204


	2011

Balance at beginning of period	$	122,052		$	105,870		$	398,605		$	626,527
Acquisitions		---			---			23,941			23,941
Amounts allocated to divestitures		---			(33,797	)		---			(33,797)

Balance at end of period	$	122,052		$	72,073		$	422,546		$	616,671

In 2011, the Corporation closed three aggregates-related acquisitions for which it recognized $23,941,000 of goodwill. Additionally, in 2011, the Corporation divested of its River District operations as part of an asset exchange. Goodwill of $33,797,000 associated with this divestiture was written off.

Intangible assets subject to amortization consist of the following:


December 31	Gross Amount		Accumulated Amortization			Net Balance
(add 000)	2012
Noncompetition agreements	$	6,560	$	(5,476	)	$	1,084
Customer relationships		20,160		(4,100	)		16,060
Use rights and other		15,865		(6,416	)		9,449
Total	$	42,585	$	(15,992	)	$	26,593

	2011
Noncompetition agreements	$	6,984	$	(5,447	)	$	1,537
Customer relationships		20,160		(2,070	)		18,090
Use rights and other		15,865		(5,307	)		10,558
Total	$	43,009	$	(12,824	)	$	30,185

Intangible assets deemed to have an indefinite life and not being amortized consist of the following:


December 31	Aggregates Business		Specialty Products		Total
(add 000)	2012
Use rights	$	21,275	$	--	$	21,275
Trade name		--		2,565		2,565
Total	$	21,275	$	2,565	$	23,840

	2011
Use rights	$	21,383	$	--	$	21,383
Trade name		--		2,565		2,565
Total	$	21,383	$	2,565	$	23,948

The Corporation did not acquire any intangibles in 2012. During 2011, the Corporation acquired $38,783,000 of other intangibles for its Aggregates business, consisting of the following:


	Amount		Weighted-average amortization period
(add 000)	2011
Subject to amortization:
Noncompetition agreements	$	180	7.0 years
Customer relationships		16,610	11.6 years
Use rights and other		7,410	19.5 years
		24,200	14.0 years

Not subject to amortization:
Use rights		14,583	N/A
Total	$	38,783

Total amortization expense for intangible assets for the years ended December 31, 2012, 2011 and 2010 was $3,593,000, $1,812,000 and $1,453,000, respectively.

The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:


(add 000)
2013	$	3,508
2014		3,214
2015		2,568
2016		2,337
2017		2,211
Thereafter		12,755
Total	$	26,593

- 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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