Intangible Assets

12 Months Ended

Dec. 31, 2016

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 $17,189. Other intangibles consists of $13,360 which was paid for service area and water rights related to our subsidiaries in Texas, $2,524 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 $265 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 $530, $453 and $364 for the years ended December 31, 2016, 2015 and 2014, respectively. Amortization expense for 2017 through 2021 is anticipated to be $530 per year.

The costs of intangible assets as of December 31, 2016 and 2015 are as follows:



	2016		2015
Concession fees	$	6,800	6,800
Other intangibles	17,189		15,875
Intangible assets	23,989		22,675
Less: Accumulated amortization
Concession fees	5,236		4,964
Other intangibles	2,412		2,153
Net intangible assets	$	16,341	15,558