Quarterly report pursuant to Section 13 or 15(d)

Intangibles

v3.7.0.1
Intangibles
3 Months Ended
Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
Note 7 – Intangibles
 
Goodwill was $10.5 million at March 31, 2017 (Successor) and December 31, 2016 (Successor). There has been no change in the carrying amount of the trade name since December 31, 2016 (Successor).
 
Intangible assets, excluding goodwill, are comprised of the following:  
 
 
 
Successor
 
 
 
Gross
 
 
 
Net intangible
 
 
 
carrying
 
Accumulated
 
assets, excluding
 
(in thousands)
 
amount
 
amortization
 
goodwill
 
March 31, 2017
 
 
 
 
 
 
 
 
 
 
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
 
Backlog – Construction
 
$
4,830
 
$
(2,746)
 
$
2,084
 
Backlog – Service
 
 
880
 
 
(615)
 
 
265
 
Customer Relationships - Service
 
 
4,710
 
 
(702)
 
 
4,008
 
Favorable Leasehold Interests
 
 
530
 
 
(48)
 
 
482
 
Total amortized intangible assets
 
 
10,950
 
 
(4,111)
 
 
6,839
 
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
 
$
(4,111)
 
$
16,799
 
 
 
 
Successor
 
 
 
Gross
 
 
 
Net intangible
 
 
 
carrying
 
Accumulated
 
assets, excluding
 
(in thousands)
 
amount
 
amortization
 
goodwill
 
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
 
 
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 indefinite-lived intangible assets are tested for impairment annually, or when an impairment event occurs. 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. 
 
Total amortization expense for these amortizable intangible assets was $1.0 million for the three months ended March 31, 2017 (Successor). There were no intangible assets in the Predecessor period, and accordingly, there was no amortization expense. The Company did not recognize any impairment charges related to definite and indefinite-lived intangible assets during the Successor period for the three months ended March 31, 2017.