Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 6. Goodwill and Other Intangible Assets

In accordance with the FASB issued guidance in the Intangibles-Goodwill and Other Topic of the Codification, we completed the required annual impairment tests. We performed a qualitative assessment on both the Hub segment goodwill and the Mode segment goodwill and determined it was not, more-likely-than-not, that goodwill might be impaired. There were no accumulated impairment losses of goodwill at the beginning of the period.

The following table presents the carrying amount of goodwill (in thousands):

						Hub Group
	Hub			Mode		Total
Balance at January 1, 2016	$	233,205		$	29,389	$	262,594
Other		(218	)	-			(218	)
Balance at December 31, 2016		232,987			29,389		262,376
Acquisition	$	86,504		$	-	$	86,504
Other		(219	)	-			(219	)
Balance at December 31, 2017	$	319,272		$	29,389	$	348,661

The changes noted as “other” in the table above for both 2017 and 2016 refer to the amortization of the income tax benefit of tax goodwill in excess of financial statement goodwill.

The components of the “Other intangible assets” are as follows (in thousands):

						Net
	Gross		Accumulated			Carrying
As of December 31, 2017:	Amount		Amortization					Life

Hub
Customer relationships	$	71,181	$	(6,434	)	$	64,747	7-15 years

Trade name	$	400	$	(400	)	$	-	3 months

Mode
Agency/customer relationships	$	15,362	$	(5,761	)	$	9,601	18 years


Hub Group Total	$	86,943	$	(12,595	)	$	74,348

						Net
	Gross		Accumulated			Carrying
As of December 31, 2016:	Amount		Amortization			Value		Life

Hub
Customer relationships	$	5,181	$	(3,792	)	$	1,389	7-15 years

Mode
Agency/customer relationships	$	15,362	$	(4,907	)	$	10,455	18 years

Hub Group Total	$	20,543	$	(8,699	)	$	11,844

The above intangible assets are amortized using the straight-line method. Amortization expense for year ended December 31, 2017 was $3.9 million and $1.3 million for each of the years ended December 31, 2017 and 2016. The remaining weighted average life of all definite lived intangible assets as of December 31, 2017 was 14.33 years and 11.25 years for Hub and Mode, respectively. Amortization expense for the next five years is as follows (in thousands):

					Hub Group
	Hub		Mode		Total
2018	$	4,795	$	853	$	5,648
2019		4,655		853		5,508
2020		4,655		853		5,508
2021		4,442		853		5,295
2022		4,400		853		5,253

- 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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