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Note 12 - Goodwill and Other Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Text Block]

Note 12.

Goodwill 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 logistics inventory management services. Landair’s results have been included in the consolidated financial statements since the date of acquisition. Landair’s trucking operations’ results are reported within our Truckload reportable segment, while Landair’s logistics operations’ results are reported within our Managed Freight reportable segment.

As a result of management compensation structure changes and a change in the branding strategy of the organization, the Company revised the estimated remaining useful life of the Landair trade name to 15 months as of June 30, 2020. At the end of its useful life, the Landair trade name will have a residual value of $0.5 million. The non-compete agreement with a former Landair executive was terminated during the second quarter of 2020. These changes resulted in additional amortization of $1.3 million during the second quarter of June 30, 2020, or a $1.0 million, or $0.06 per diluted share, increase in net loss. The remaining useful lives as adjusted are included in the summary of other intangible assets below.

As of June 30, 2020 and December 31, 2019, we had goodwill of $42.5 million.

A summary of other intangible assets as of June 30, 2020 and December 31, 2019 is as follows:

(in thousands)	June 30, 2020
	Gross intangible assets		Accumulated amortization			Net intangible assets		Remaining life (months)
Trade name:
Dedicated	$	2,402	$	(588	)	$	1,814
Managed Freight		1,998		(490	)		1,508
Total trade name		4,400		(1,078	)		3,322		15
Non-compete agreement:
Dedicated		914		(914	)		-
Managed Freight		486		(486	)		-
Total non-compete agreement		1,400		(1,400	)		-		-
Customer relationships:
Dedicated		14,072		(2,345	)		11,727
Managed Freight		14,128		(2,355	)		11,773
Total customer relationships:		28,200		(4,700	)		23,500		120
Total other intangible assets	$	34,000	$	(7,178	)	$	26,822

(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

The above intangible assets have a weighted average remaining life of 107 months as of June 30, 2020, compared to 128 months as of December 31, 2019, as a result of the change in estimated useful life as discussed above. The expected amortization of these assets for the remainder of 2020 and the next five successive years is as follows:

	(in thousands)
2020 (1)	$	2,304
2021		4,043
2022		2,350
2023		2,350
2024		2,350
2025		2,350
Thereafter		10,575

(1) Excludes the six months ended June 30, 2020.