Intangible Assets

12 Months Ended

Dec. 31, 2018

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 $8,999 as of December 31, 2018. Other intangibles consists of $4,128 which was paid for service area and water rights related to CLWSC, $3,831 for infrastructure related to the Cupertino service concession arrangement and $1,040 incurred in conjunction with SCVWD water contracts related to the operation of San Jose Water Company. All intangible assets are recorded at cost and all are being 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 $647, $616 and $530 for the years ended December 31, 2018, 2017 and 2016, respectively. Amortization expense for 2019 through 2023 is anticipated to be $647 per year.

The costs of intangible assets as of December 31, 2018 and 2017 are as follows:



	2018		2017
Concession fees	$	6,800	6,800
Other intangibles	8,999		7,613
Intangible assets	15,799		14,413
Less: Accumulated amortization
Concession fees	5,780		5,508
Other intangibles	2,960		2,585
Net intangible assets	$	7,059	6,320