XML 45 R8.htm IDEA: XBRL DOCUMENT
v3.3.0.814

GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended
--- | ---
Sep. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | (B) GOODWILL AND INTANGIBLE ASSETS Goodwill: We perform our annual test of impairment on goodwill during the fourth quarter of our fiscal year. If business conditions in the operating units containing goodwill change substantially during the fiscal year, and we are unable to conclude that an impairment loss is not likely to occur, we will perform impairment tests for those business units during our quarterly periods. At September 30, 2015, we determined that impairment losses are not likely to occur; therefore, no impairment tests were performed during the quarter. Intangible Assets: Intangible assets are currently being amortized over their expected lives. During the three months ended September 30, 2015, the continued decline in oil prices during the summer of 2015 adversely impacted oil and gas drilling activity, leading to further reductions in demand and pricing for proppants. This reduction in demand adversely impacted performance under our customer contracts, resulting in the amendment of certain of these contracts. Based on the reduced demand for proppants and the executed and pending amendments to our customer contracts, we concluded that long-lived asset impairment indicators were present during the quarter ended September 30, 2015 for our customer contract intangible assets. We performed a recovery test to determine if any of the customer contract intangible assets related to our oil and gas proppants business unit were impaired at September 30, 2015. Based on our analysis of the undiscounted cash flows for each of our customer contract intangibles related to our oil and gas proppants business, we concluded that the carrying value of certain customer contract intangible assets exceeded the undiscounted cash flows for the related assets. For those contracts whose carrying value exceeded the undiscounted cash flows, we calculated the fair value of each contract using the weighted-average probable cash flows related to each contract (level 3 inputs), discounted using a weighted-average cost of capital (“WACC”). The WACC was determined from relevant market comparisons, and adjusted for specific risks. This analysis resulted in an impairment loss of approximately $28.4 million, which is included in cost of goods sold in the unaudited Consolidated Statement of Earnings for the three and six months ended September 30, 2015. Intangible assets, including the impact of the impairment charge discussed above, consist of the following:
|  | Cost at September 30, 2015 |  |  | Amortization for Six Months ended September 30, 2015 |  |  | Impairment |  |  | Accumulated Amortization |  |  | Net |
|  |  | (dollars in thousands) |
Goodwill and Intangible Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer Contracts and Relationships |  | $ | 63,260 |  |  | $ | 7,656 |  |  | $ | 28,354 |  |  | $ | (42,004 | ) |  | $ | 21,256 |
Sales Contracts |  |  | 2,500 |  |  |  | 312 |  |  |  | - |  |  |  | (1,770 | ) |  | $ | 730 |
Permits |  |  | 27,440 |  |  |  | 346 |  |  |  | - |  |  |  | (6,242 | ) |  | $ | 21,198 |
Goodwill |  |  | 133,885 |  |  |  | - |  |  |  | - |  |  |  | - |  |  | $ | 133,885 |
Total Goodwill and Intangible Assets |  | $ | 227,085 |  |  | $ | 8,314 |  |  | $ | 28,354 |  |  | $ | (50,016 | ) |  | $ | 177,069 |
At September 30, 2015, approximately $16.2 million of Customer Contracts and Relationships was related to our oil and gas proppants business. Under the terms of one of the customer contracts, the customer prepaid $15.0 million for sand. At September 30, 2015, approximately $12.5 million of this prepaid is still available to the customer.
|  | March 31, 2015 |
|  | Amortization Period |  |  | Cost |  |  | Accumulated Amortization |  |  | Net |
|  | (dollars in thousands) |
Goodwill and Intangible Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer contracts and relationships |  |  | 5-15 years |  |  | $ | 62,060 |  |  | $ | (5,994 | ) |  | $ | 56,066 |
Sales contracts |  |  | 4 years |  |  |  | 2,500 |  |  |  | (1,458 | ) |  |  | 1,042 |
Permits |  |  | 40 years |  |  |  | 27,440 |  |  |  | (5,896 | ) |  |  | 21,544 |
Goodwill |  |  |  |  |  |  | 132,515 |  |  |  | - |  |  |  | 132,515 |
Total Goodwill and Intangible Assets |  |  |  |  |  | $ | 224,515 |  |  | $ | (13,348 | ) |  | $ | 211,167 |
During July 2015, goodwill increased approximately $1.4 million and customer contracts and relationships increased $1.2 million in connection with the Skyway Acquisition. Amortization expense of intangibles was $5.7 million the year ended March 31, 2015. After the impairment discussed above, amortization expense is expected to be approximately $4.9 million for the remainder of fiscal 2016, $9.2 million for fiscal year 2017, and $3.2 million for fiscal years 2018 and 2019, $2.2 million for fiscal year 2020 and $1.3 million for fiscal year 2021.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration