Annual report pursuant to Section 13 and 15(d)

CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS

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CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2014
Current Income Tax Benefit Due to Release of Valuation Allowance  
CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS
9. CUSTOMER CONTRACTS AND OTHER INTANGIBLE ASSETS

 

Customer contracts are amortized on a straight-line basis over the period of the agreements, as straight-line best approximates the ratio that current revenues bear to the total of current and anticipated revenues, based on the estimated lives of the assets. In accordance with the FASB ASC Topic 350 “Intangibles - Goodwill and other”, the expected lives of customer contracts were reviewed, and it was determined that customer contracts should be amortized over a life of 7 to 20 years dependent upon customer type. The carrying amount and accumulated amortization for customer contracts were as follows:

 

December 31,   2014   2013
(in thousands)        
Customer contracts   $ 214,125     $ 226,717  
Less:  Accumulated amortization     (109,468 )     (125,260 )
Customer contracts, net   $ 104,657     $ 101,457  

 

The carrying amount of customer contracts in foreign countries was $16.8 million as of December 31, 2014 and $6.3 million as of December 31, 2013.

 

Other intangible assets include non-compete agreements, patents and finite lived and indefinite lived trade names. Non-compete agreements are amortized on a straight-line basis over periods ranging from 3 to 20 years and patents are amortized on a straight-line basis over 15 years. The carrying amount and accumulated amortization for other intangible assets were as follows:

 

At December 31,   2014   2013
(in thousands)        
Other intangible assets   $ 41,327     $ 36,352  
Less:  Accumulated amortization     (12,512 )     (9,240 )
Other intangible assets, net   $ 28,815     $ 27,112  

 

The carrying amount of other intangible assets in foreign countries was $4.1 million as of December 31, 2014 and $0.4 million as of December 31, 2013.

 

Included in the table above are trademarks and trade names of $16.6 million and $14.8 million at December 31, 2014 and 2013, respectively. Also included in the table above are non-amortizable, indefinite lived intangible assets of $ 11.3 million and $12.6 million at December 31, 2014 and 2013, respectively.

The carrying amount of customer contracts and other intangible assets, net were as follows:

 

 

December 31,   2014   2013
(in thousands)        
Customer contracts, net   $ 104,657     $ 101,457  
Other intangible assets, net     28,815       27,112  
Customer contracts and other intangible assets, net   $ 133,472     $ 128,569  

 

Total amortization expense was approximately $26.9 million in 2014, $25.2 million in 2013 and $23.4 million in 2012.

 

Estimated amortization expense for the existing carrying amount of customer contracts and other intangible assets for each of the five succeeding fiscal years are as follows:

 

(in thousands)

 

2015   $ 23,377  
2016     20,621  
2017     18,744  
2018     15,276  
2019     12,480