Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v2.4.0.8
Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2014
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
 
Small-Scale Infrastructure
 
Other
 
Total
Balance, December 31, 2013
$
24,759

 
$
3,375

 
$
4,124

 
$

 
$
20,816

 
$
53,074

Goodwill acquired during the year

 

 

 

 
7,729

 
7,729

Fair value adjustment(1)

 

 

 

 
641

 
641

Currency effects

 

 
(208
)
 

 
(120
)
 
(328
)
Balance, September 30, 2014
$
24,759

 
$
3,375

 
$
3,916

 
$

 
$
29,066

 
$
61,116

Accumulated Goodwill Impairment Balance, December 31, 2013
$

 
$

 
$
(1,016
)
 
$

 
$

 
$
(1,016
)
Accumulated Goodwill Impairment Balance, September 30, 2014
$

 
$

 
$
(1,016
)
 
$

 
$

 
$
(1,016
)
(1) Fair value adjustment represents a final purchase accounting adjustment to decrease the recorded fair value of certain acquired intangible assets totaling $801, net of a $160 deferred tax liability adjustment, related to the Company’s prior year acquisition of The Energy Services Partnership Limited (now known as Ameresco Limited) and ESP Response Limited (together “ESP”).
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. No changes to useful lives were made during the nine months ended September 30, 2014 or for the year ended December 31, 2013.
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 defined by the nature of the respective intangible asset. Intangible assets acquired during the nine months ended September 30, 2014 consisted of customer contracts, customer relationships, non-compete assets and technology which were assigned a weighted average useful life of 8.2 years.
The gross carrying amount and accumulated amortization of intangible assets are as follows:
 
As of September 30,
 
As of December 31,
 
2014
 
2013
Gross Carrying Amount
 
 
 
Customer contracts
$
8,220

 
$
7,684

Customer relationships
13,045

 
8,200

Non-compete agreements
3,447

 
3,230

Technology
2,815

 
2,386

Trade names
553

 
556

 
28,080

 
22,056

Accumulated Amortization
 
 
 
Customer contracts
6,431

 
5,349

Customer relationships
4,045

 
2,923

Non-compete agreements
2,530

 
1,872

Technology
1,640

 
1,299

Trade names
420

 
360

 
15,066

 
11,803

Intangible assets, net
$
13,014

 
$
10,253


Amortization expense related to customer contracts is included in cost of revenues in the consolidated statements of income (loss). Amortization expense related to all other acquired intangible assets is included in selling, general and administrative expenses in the consolidated statements of income (loss). Amortization expense for the three months ended September 30, 2014 and 2013 related to customer contracts was $513 and $499, respectively. Amortization expense for the nine months ended September 30, 2014 and 2013 related to customer contracts was $1,127 and $953, respectively. Amortization expense for the three months ended September 30, 2014 and 2013 related to all other acquired intangible assets was $875 and $969, respectively. Amortization expense for the nine months ended September 30, 2014 and 2013 related to all other acquired intangible assets was $2,139 and $2,304, respectively.