Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Note B: Goodwill and Intangible Assets

The following table shows the changes in goodwill by reportable segment and in total:

December 31	Mid- America Group		Southeast Group		West Group			Cement		Total
(add 000)	2014
Balance at beginning of period	$	263,967	$	50,346	$	302,308		$	—	$	616,621
Division reorganization		18,150		—		(18,150	)		—		—
Acquisitions		—		—		600,372			883,900		1,484,272
Divestitures		—		—		(32,094	)		—		(32,094	)
Balance at end of period	$	282,117	$	50,346	$	852,436		$	883,900	$	2,068,799
	2013
Balance at beginning of period	$	263,868	$	50,001	$	302,335		$	—	$	616,204
Acquisitions		99		345		—			—		444
Adjustments to purchase price allocations		—		—		(27	)		—		(27	)
Balance at end of period	$	263,967	$	50,346	$	302,308		$	—	$	616,621

Intangible assets subject to amortization consist of the following:

December 31	Gross Amount		Accumulated Amortization			Net Balance
(add 000)	2014
Noncompetition agreements	$	6,274	$	(5,971	)	$	303
Customer relationships		36,610		(7,654	)		28,956
Operating permits		498,462		(5,575	)		492,887
Use rights and other		15,385		(6,940	)		8,445
Trade names		12,800		(1,143	)		11,657
Total	$	569,531	$	(27,283	)	$	542,248
	2013
Noncompetition agreements	$	6,274	$	(5,583	)	$	691
Customer relationships		20,660		(6,160	)		14,500
Operating permits		6,800		(1,394	)		5,406
Use rights and other		10,115		(6,156	)		3,959
Total	$	43,849	$	(19,293	)	$	24,556

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

December 31	Aggregates Business		Cement		Magnesia Specialties		Total
(add 000)	2014
Operating permits	$	6,600	$	—	$	—	$	6,600
Use rights		9,385		20,027		—		29,412
Trade names		—		14,380		2,565		16,945
Total	$	15,985	$	34,407	$	2,565	$	52,957
	2013
Operating permits	$	11,635	$	—	$	—	$	11,635
Use rights		9,835		—		—		9,835
Trade names		—		—		2,565		2,565
Total	$	21,470	$	—	$	2,565	$	24,035

During 2014, the Corporation acquired $559,277,000 of intangibles from the Texas Industries Inc. (“TXI”) acquisition, consisting of the following:

(add 000)	Amount		Weighted-average amortization period
Subject to amortization:
Customer relationships	$	20,150	12.0 years
Operating permits		487,100	87.3 years
Use rights and other		4,820	8.2 years
Trade names		12,800	6.0 years
		524,870	81.7 years
Not subject to amortization:
Trade names		14,380	N/A
Use rights		20,027
		34,407
Total	$	559,277

Use rights include, but are not limited to, water rights, subleases and proprietary information.

Total amortization expense for intangible assets for the years ended December 31, 2014, 2013 and 2012 was $9,311,000, $3,587,000 and $3,593,000, respectively.

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

(add 000)
2015	$	14,488
2016		14,183
2017		14,044
2018		13,153
2019		11,847
Thereafter		474,533
Total	$	542,248

- 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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