Ameresco, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying value of goodwill attributable to each reportable segment are as follows:



	U.S. Regions			U.S. Federal			Canada			Non-solar DG		Other			Total
Balance, December 31, 2018	$	26,370		$	4,609		$	3,217		$	—	$	24,136		$	58,332
Goodwill acquired during the year	406			—			—			—		—			406
Re-measurement adjustment	(91		)	(628		)	—			—		—			(719		)
Currency effects	—			—			132			—		(22		)	110
Balance, June 30, 2019	$	26,685		$	3,981		$	3,349		$	—	$	24,114		$	58,129
Accumulated Goodwill Impairment
Balance, December 31, 2018	$	—		$	—		$	(1,016	)	$	—	$	—		$	(1,016	)
Balance, June 30, 2019	$	—		$	—		$	(1,016	)	$	—	$	—		$	(1,016	)

The Company completed one acquisition during the six months ended June 30, 2019, which resulted in a $315 net increase in goodwill as disclosed in Note 4. During the six months ended June 30, 2019, the Company recorded measurement period adjustments which resulted in a reduction of goodwill of $719. See Note 4 for further discussion surrounding the measurement period adjustments.

Since the Company’s annual goodwill impairment test there have been no events that would have triggered a need for an interim impairment test.

Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. The Company annually assesses whether a change in the life over which the Company’s assets are amortized is necessary, or more frequently if events or circumstances warrant.

Acquired intangible assets other than goodwill that are subject to amortization include customer contracts, customer relationships, non-compete agreements, technology and trade names. Customer contracts are amortized ratably over the period of the acquired customer contracts ranging in periods from approximately one to five years. All other acquired intangible assets are amortized over periods ranging from approximately four to fifteen years, as determined by the nature of the respective intangible asset. As discussed in Note 4, the Company completed an acquisition in January 2019 which resulted in a $500 increase in customer relationships, which will be amortized over an 8 year period.

The gross carrying amount and accumulated amortization of intangible assets are as follows:



	As of June 30,		As of December 31,
	2019		2018
Gross Carrying Amount
Customer contracts	$	7,835	$	7,818
Customer relationships	12,576		12,082
Non-compete agreements	3,011		3,013
Technology	2,730		2,710
Trade names	543		541
	26,695		26,164
Accumulated Amortization
Customer contracts	7,730		7,668
Customer relationships	10,686		10,302
Non-compete agreements	3,011		3,013
Technology	2,686		2,651
Trade names	530		526
	24,643		24,160
Intangible assets, net	$	2,052	$	2,004

Amortization expense related to customer contracts is included in cost of revenues in the condensed consolidated statements of income. Amortization expense related to all other acquired intangible assets is included in selling, general and administrative expenses in the condensed consolidated statements of income. Amortization expense for the three months ended June 30, 2019 and 2018 related to customer contracts was $22 and $0, respectively. Amortization expense for the three months ended June 30, 2019 and 2018 related to all other acquired intangible assets and was $222 and $249, respectively. Amortization expense for the six months ended June 30, 2019 and 2018 related to customer contracts was $45 and $0, respectively. Amortization expense for the six months ended June 30, 2019 and 2018 related to all other acquired intangible assets and was $412 and $502, respectively.