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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2016
GOODWILL AND INTANGIBLE ASSETS |
GOODWILL AND INTANGIBLE ASSETS | NOTE D – GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired. Goodwill by reportable operating segment consisted of the following:
|  | Total |  | ArcBest |  | FleetNet |
|  | (in thousands)
Balances December 31, 2014 |  | $ | 77,078 |  | $ | 76,448 |  | $ | 630 |
Goodwill acquired(1) |  |  | 19,387 |  |  | 19,387 |  |  | — |
Balances December 31, 2015 |  | $ | 96,465 |  | $ | 95,835 |  | $ | 630 |
Goodwill acquired(2) |  |  | 12,640 |  |  | 12,640 |  |  | — |
Goodwill divested(3) |  |  | (842) |  |  | (842) |  |  | — |
Purchase accounting adjustments |  |  | 612 |  |  | 612 |  |  | — |
Balances December 31, 2016 |  | $ | 108,875 |  | $ | 108,245 |  | $ | 630 |
| (1) |  | Goodwill of $4.2 million and $15.2 million related to the January 2, 2015 acquisition of Smart Lines and the December 1, 2015 acquisition of Bear, respectively, is expected to be fully deductible for tax purposes.
| (2) |  | Goodwill related to the September 2, 2016 acquisition of LDS is expected to be fully deductible for tax purposes. The fair value assessment of assets and liabilities acquired with LDS was based on preliminary information as of December 31, 2016.
| (3) |  | Goodwill divested due to the sale of certain non-strategic businesses was determined based on the relative fair value of the businesses sold to the total fair value of the reporting unit.
Intangible assets consisted of the following as of December 31:
|  |  |  | 2016 |  | 2015 |
|  | Weighted-Average |  |  |  |  | Accumulated |  | Net |  |  |  |  | Accumulated |  | Net |
|  | Amortization Period |  | Cost |  | Amortization |  | Value |  |  | Cost |  | Amortization |  | Value |
|  | (in years) |  | (in thousands) |  | (in thousands) |
Finite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships(1) |  | 14 |  | $ | 60,431 |  | $ | 15,350 |  | $ | 45,081 |  | $ | 52,221 |  | $ | 11,331 |  | $ | 40,890 |
Driver network |  | 3 |  |  | 3,200 |  |  | 3,200 |  |  | — |  |  | 3,200 |  |  | 3,200 |  |  | — |
Other |  | 9 |  |  | 1,032 |  |  | 406 |  |  | 626 |  |  | 1,032 |  |  | 257 |  |  | 775 |
|  | 13 |  |  | 64,663 |  |  | 18,956 |  |  | 45,707 |  |  | 56,453 |  |  | 14,788 |  |  | 41,665 |
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade name |  | N/A |  |  | 32,300 |  |  | N/A |  |  | 32,300 |  |  | 32,300 |  |  | N/A |  |  | 32,300 |
Other |  | N/A |  |  | 2,500 |  |  | N/A |  |  | 2,500 |  |  | 2,822 |  |  | N/A |  |  | 2,822 |
|  |  |  |  | 34,800 |  |  |  |  |  | 34,800 |  |  | 35,122 |  |  |  |  |  | 35,122 |
Total intangible assets |  | N/A |  | $ | 99,463 |  | $ | 18,956 |  | $ | 80,507 |  | $ | 91,575 |  | $ | 14,788 |  | $ | 76,787 |
| (1) |  | Customer relationships include $7.7 million related to the September 2, 2016 acquisition of LDS. The fair value assessment of assets and liabilities acquired with LDS was based on preliminary information as of December 31, 2016.
The future amortization for intangible assets and acquired software as of December 31, 2016 were as follows:
|  |  |  |  | Intangible |  | Acquired |
|  | Total |  | Assets |  | Software(1) |
|  | (in thousands) |
2017 |  | $ | 7,236 |  | $ | 4,538 |  | $ | 2,698 |
2018 |  |  | 6,654 |  |  | 4,520 |  |  | 2,134 |
2019 |  |  | 5,469 |  |  | 4,482 |  |  | 987 |
2020 |  |  | 4,471 |  |  | 4,454 |  |  | 17 |
2021 |  |  | 4,418 |  |  | 4,412 |  |  | 6 |
Thereafter |  |  | 23,301 |  |  | 23,301 |  |  | — |
Total amortization |  | $ | 51,549 |  | $ | 45,707 |  | $ | 5,842 |
| (1) |  | Acquired software is reported in property, plant and equipment.
Annual impairment evaluations of goodwill and indefinite‑lived intangible assets were performed as of October 1, 2016 and 2015, and it was determined that there was no impairment of the recorded balances. In November 2016, the Company determined it would discontinue the use of certain software applications as a result of the realignment of the Company’s corporate structure and recorded a non-cash impairment charge of $6.2 million which includes the write-down of $5.5 million of acquired software in the ArcBest segment to its fair value, reflecting estimated reproduction costs less an obsolescence allowance. (See Note O for disclosure of the Company’s restructuring costs.)

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- 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=66006027&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=66006027&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=66006027&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
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