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Note 5 - Goodwill, Other Intangible, and Other Assets | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] |
5. | GOODWILL, OTHER INTANGIBLE, AND OTHER ASSETS
On July 3, 2018, we acquired 100% of the outstanding stock of Landair Holdings, Inc., a Tennessee corporation ("Landair"). Landair is a dedicated and for-hire truckload carrier, as well as a supplier of transportation management, warehousing, and inventory management services. Landair's results have been included in the consolidated financial statements since the date of acquisition. The Company's only goodwill and other intangible assets are a result of the Landair acquisition. In 2019, the allocation of the Landair purchase price was subject to change based on finalization of the valuation of long lived and intangible assets and self-insurance reserves, as well as our ongoing evaluation of Landair's accounting principles of consistency with ours. The impact of this assessment was an increase of $0.9 million to the carrying value of goodwill in 2019. The final assignment of goodwill and intangible assets to our reportable operating segments was completed as of June 30, 2019. The Company conducted its annual impairment assessments and tests of goodwill for each reporting unit as of October 1, 2019. The first step of the goodwill impairment test is the Company's assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the reporting unit's carrying amount, including goodwill. When performing the qualitative assessment, the Company considers the impact of factors including, but not limited to, macroeconomic and industry conditions, overall financial performance of each reporting unit, litigation and new legislation. If based on the qualitative assessments, the Company believes it more likely than not that the fair value of a reporting unit is less than the reporting unit's carrying amount, or periodically as deemed appropriate by management, the Company will prepare an estimation of the respective reporting unit's fair value utilizing a quantitative approach. If the estimation of fair value indicates that impairment potentially exists, the Company will then measure the amount of the impairment, if any. Goodwill impairment exists when the estimated implied fair value of goodwill is less than its carrying value. Changes in strategy or market conditions could significantly impact these fair value estimates and require adjustments to recorded asset balances. A summary of indefinite-lived goodwill and other intangible assets, by reportable operating segment as of December 31, 2019 and 2018 is as follows:
(in thousands) |  | December 31, 2019 |
|  | Gross/net goodwill |
Dedicated |  | $ | 15,320 |
Managed Freight |  |  | 27,198 |
Total goodwill |  | $ | 42,518 |
(in thousands) |  | December 31, 2019 |  |  |  |  |
|  | Gross intangible assets |  |  | Accumulated amortization |  |  | Net intangible assets |  |  | Remaining Life (months) |
Trade name: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dedicated |  | $ | 2,402 |  |  | $ | (240 | ) |  | $ | 2,162 |  |  |  |  |
Managed Freight |  |  | 1,998 |  |  |  | (200 | ) |  |  | 1,798 |  |  |  |  |
Total trade name |  |  | 4,400 |  |  |  | (440 | ) |  |  | 3,960 |  |  |  | 162 |
Non-Compete agreement: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dedicated |  |  | 914 |  |  |  | (274 | ) |  |  | 640 |  |  |  |  |
Managed Freight |  |  | 486 |  |  |  | (146 | ) |  |  | 340 |  |  |  |  |
Total non-compete agreement |  |  | 1,400 |  |  |  | (420 | ) |  |  | 980 |  |  |  | 42 |
Customer relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dedicated |  |  | 14,072 |  |  |  | (1,759 | ) |  |  | 12,313 |  |  |  |  |
Managed Freight |  |  | 14,128 |  |  |  | (1,766 | ) |  |  | 12,362 |  |  |  |  |
Total customer relationships: |  |  | 28,200 |  |  |  | (3,525 | ) |  |  | 24,675 |  |  |  | 126 |
Total other intangible assets |  | $ | 34,000 |  |  | $ | (4,385 | ) |  | $ | 29,615 |  |  |  |  |
(in thousands) |  | December 31, 2018 |
|  | Gross/net goodwill |
Goodwill |  | $ | 41,598 |
(in thousands) |  | December 31, 2018 |  |  |  |  |
|  | Gross intangible assets |  |  | Accumulated amortization |  |  | Net intangible assets |  |  | Remaining Life (months) |
Trade name |  | $ | 4,400 |  |  | $ | (147 | ) |  | $ | 4,253 |  |  |  | 174 |
Non-Compete agreement |  |  | 1,400 |  |  |  | (140 | ) |  |  | 1,260 |  |  |  | 54 |
Customer relationships |  |  | 28,200 |  |  |  | (1,175 | ) |  |  | 27,025 |  |  |  | 138 |
Total other intangible assets |  | $ | 34,000 |  |  | $ | (1,462 | ) |  | $ | 32,538 |  |  |  |  |
The above finite-lived intangible assets have a weighted average remaining life of 128 months and 140 months as of December 31, 2019 .and 2018 , respectively. Amortization expenses of intangible assets were $2.9 million , $1.5 million , and $0.2 million for 2019, 2018, and 2017 , respectively. The expected amortization expense of these assets for the next five years is as follows:
|  | (In thousands) |
2020 |  | $ | 2,923 |
2021 |  |  | 2,923 |
2022 |  |  | 2,923 |
2023 |  |  | 2,783 |
2024 |  |  | 2,643 |
Thereafter |  |  | 15,420 |
A summary of other assets as of December 31, 2019 and 2018 is as follows:
(in thousands) |  | 2019 |  |  | 2018 |
Investment in TEL |  | $ | 31,906 |  |  | $ | 26,106 |
Other assets, net |  |  | 6,013 |  |  |  | 11,043 |
Total other assets, net |  | $ | 37,919 |  |  | $ | 37,149 |
Additionally, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment is recognized on assets classified as held and used when the sum of undiscounted estimated cash flows expected to result from the use of the asset is less than the carrying value. If such measurement indicates a possible impairment, the estimated fair value of the asset is compared to its net book value to measure the impairment charge, if any.

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