Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets consist of a concession fee paid to the City of Cupertino of $6,800 for operating the City of Cupertino municipal water system and other intangibles of $11,541. Other intangibles consists of $10,077 which was paid for service area and water rights related to our subsidiaries in Texas, $1,040 incurred in conjunction with Santa Clara Valley Water District water contracts related to the operation of San Jose Water Company and $424 in other miscellaneous intangibles. All intangible assets are recorded at cost and are amortized using the straight-line method over the legal or estimated economic life of the asset ranging from 5 to 70 years.

Amortization expense for the intangible assets was $354 for the year ended December 31, 2013 and $340 for the years ended December 31, 2012 and 2011. Amortization expense for 2014, 2015, 2016, 2017 and 2018 is anticipated to be $354 per year.

The costs of intangible assets as of December 31, 2013 and 2012 are as follows:



	2013		2012
Concession fees	$	6,800	6,800
Other intangibles	11,541		8,761
Intangible assets	18,341		15,561
Less: Accumulated amortization
Concession fees	4,420		4,148
Other intangibles	765		712
Net intangible assets	$	13,156	10,701