Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangibles

v3.8.0.1
Goodwill and Intangibles
12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
Note 8 – Goodwill and Intangibles
 
Intangible assets, including goodwill, are comprised of the following: 
 
 
 
Gross
 
 
 
 
 
 
 
carrying
 
Accumulated
 
Net intangible
 
(in thousands)
 
amount
 
amortization
 
assets
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
 
Backlog – Construction
 
$
4,830
 
$
(4,347)
 
$
483
 
Backlog – Service
 
 
880
 
 
(880)
 
 
-
 
Customer Relationships – Service
 
 
4,710
 
 
(1,359)
 
 
3,351
 
Favorable Leasehold Interests
 
 
530
 
 
(99)
 
 
431
 
Total amortized intangible assets
 
 
10,950
 
 
(6,685)
 
 
4,265
 
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
 
Trade Name
 
 
9,960
 
 
 
 
9,960
 
Total unamortized intangible assets
 
 
9,960
 
 
 
 
9,960
 
Total amortized and unamortized assets, excluding goodwill
 
$
20,910
 
$
(6,685)
 
$
14,225
 
Goodwill
 
$
10,488
 
$
 
$
10,488
 
 
 
 
Gross
 
 
 
 
 
 
 
carrying
 
Accumulated
 
Net intangible
 
(in thousands)
 
amount
 
amortization
 
assets
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
 
Backlog – Construction
 
$
4,830
 
$
(2,222)
 
$
2,608
 
Backlog – Service
 
 
880
 
 
(398)
 
 
482
 
Customer Relationships – Service
 
 
4,710
 
 
(452)
 
 
4,258
 
Favorable Leasehold Interests
 
 
530
 
 
(31)
 
 
499
 
Total amortized intangible assets
 
 
10,950
 
 
(3,103)
 
 
7,847
 
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
 
Trade Name
 
 
9,960
 
 
 
 
9,960
 
Total unamortized intangible assets
 
 
9,960
 
 
 
 
9,960
 
Total amortized and unamortized assets, excluding goodwill
 
$
20,910
 
$
(3,103)
 
$
17,807
 
Goodwill
 
$
10,488
 
$
 
$
10,488
 
  
The definite-lived intangible assets are amortized over the period the Company expects to receive the related economic benefit, which for customer relationships is based upon estimated future net cash inflows. The Company has previously determined that its trade name has an indefinite useful life. The Limbach trade name has been in existence since the Company’s founding in 1901 and therefore is an established brand within the industry.
 
The estimated remaining useful lives of definite-lived intangible assets are as follows:
 
Asset
 
Amortization Method
 
Estimated Remaining Useful Life
Backlog – Construction
 
Pattern of economic benefit
 
1.5 Years
Customer Relationships – Service
 
Pattern of economic benefit
 
14.0 Years
Favorable Leasehold Interests
 
Straight line
 
7.67 Years
 
The Successor’s estimated amortization expense is as follows for the years ending December 31:
 
(in thousands)
 
Estimated Amortization Expense
 
2018
 
$
1,272
 
2019
 
$
642
 
2020
 
$
525
 
2021
 
$
431
 
2022
 
$
357
 
2023 and thereafter
 
$
1,038
 
Total
 
$
4,265
 
 
Total amortization expense for these amortizable intangible assets was $3.6 million for the year ended December 31, 2017 and $3.1 million for the Successor period from July 20, 2016 to December 31, 2016. There were no intangible assets in the Predecessor periods, and accordingly, there was no amortization expense.
 
The Company did not recognize any impairment charges related to goodwill or definite and indefinite-lived intangible assets for the year ended December 31, 2017 or the period from July 20, 2016 to December 31, 2016.