Intangible Assets

12 Months Ended

Dec. 31, 2015

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 $15,875. Other intangibles consists of $12,059 which was paid for service area and water rights related to our subsidiaries in Texas, $2,352 of Depreciable Plant and Equipment for infrastructure related to the Cupertino service concession arrangement (See Note 1 of Notes to Consolidated Financial Statements), $1,040 incurred in conjunction with SCVWD 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 all, except for TWA water rights, are being amortized using the straight-line method over the legal or estimated economic life of the asset ranging from 5 to 70 years. TWA water rights are not being amortized as they have been determined to have an indefinite useful life.

Amortization expense for the intangible assets was $453, $364 and $354 for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization expense for 2016, 2017, 2018, 2019 and 2020 is anticipated to be $453 per year.

The costs of intangible assets as of December 31, 2015 and 2014 are as follows:



	2015		2014
Concession fees	$	6,800	6,800
Other intangibles	15,875		12,533
Intangible assets	22,675		19,333
Less: Accumulated amortization
Concession fees	4,964		4,692
Other intangibles	2,153		860
Net intangible assets	$	15,558	13,781