Note 7. Other Intangible Assets

6 Months Ended

Jun. 30, 2015

Notes

Note 7. Other Intangible Assets

7.             Goodwill and Other Intangible Assets

The carrying amount of goodwill was $6,134,000 and $0 at June 30, 2015 and December 31, 2014, respectively. 

In connection with the acquisition of a controlling interest in GAF discussed in Note 2, the Company recorded $6,134,000 of goodwill and $5,500,000 of intangible assets at June 30, 2015.  None of the goodwill is deductible for income tax purposes.

Of the intangible assets of $5,500,000 recorded, $1,000,000 represents the fair value of trademarks, which is being amortized over a period of 8 years, and $4,500,000 represents the fair value of customer relationships being amortized over a period of 9 years.

The change in the carrying amount of other intangible assets for the three months and six months ended June 30, 2015 and 2014 are as follows (in thousands):

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2015		2014		2015		2014
Balance, beginning of period	$	9,689	$	11,019	$	9,915	$	11,408
Additions		5,500		-		5,500		-
Amortization expense		(344)		(389)		(570)		(778)
Balance, end of period	$	14,845	$	10,630	$	14,845	$	10,630