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Note 12 - Goodwill and Other Assets | 9 Months Ended
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Sep. 30, 2020
Notes to Financial Statements |
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 Dedicated reportable segment, while Landair’s logistics operations’ results are reported within our Managed Freight and Warehousing reportable segments. 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 none and $1.3 million during the three and nine months ended September 30, 2020, or a $1.0 million, or $0.06 per diluted share, decrease in net income. The remaining useful lives as adjusted are included in the summary of other intangible assets below. As of September 30, 2020 and December 31, 2019, we had goodwill of $42.5 million. A summary of other intangible assets as of September 30, 2020 and December 31, 2019 is as follows:
(in thousands) |  | September 30, 2020 |
|  | Gross intangible assets |  |  | Accumulated amortization |  |  | Net intangible assets |  |  | Remaining life (months) |
Trade name: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dedicated |  | $ | 2,402 |  |  | $ | (896 | ) |  | $ | 1,506 |  |  |  |  |
Managed Freight |  |  | 999 |  |  |  | (373 | ) |  |  | 626 |  |  |  |  |
Warehousing |  |  | 999 |  |  |  | (373 | ) |  |  | 626 |  |  |  |  |
Total trade name |  |  | 4,400 |  |  |  | (1,642 | ) |  |  | 2,758 |  |  |  | 12 |
Non-Compete agreement: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dedicated |  |  | 914 |  |  |  | (914 | ) |  |  | - |  |  |  |  |
Managed Freight |  |  | 130 |  |  |  | (130 | ) |  |  | - |  |  |  |  |
Warehousing |  |  | 356 |  |  |  | (356 | ) |  |  | - |  |  |  |  |
Total non-compete agreement |  |  | 1,400 |  |  |  | (1,400 | ) |  |  | - |  |  |  | - |
Customer relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dedicated |  |  | 14,072 |  |  |  | (2,638 | ) |  |  | 11,434 |  |  |  |  |
Managed Freight |  |  | 1,692 |  |  |  | (318 | ) |  |  | 1,374 |  |  |  |  |
Warehousing |  |  | 12,436 |  |  |  | (2,332 | ) |  |  | 10,104 |  |  |  |  |
Total customer relationships: |  |  | 28,200 |  |  |  | (5,288 | ) |  |  | 22,912 |  |  |  | 117 |
Total other intangible assets |  | $ | 34,000 |  |  | $ | (8,330 | ) |  | $ | 25,670 |  |  |  |  |
(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 |  |  | 999 |  |  |  | (100 | ) |  |  | 899 |  |  |  |  |
Warehousing |  |  | 999 |  |  |  | (100 | ) |  |  | 899 |  |  |  |  |
Total trade name |  |  | 4,400 |  |  |  | (440 | ) |  |  | 3,960 |  |  |  | 162 |
Non-Compete agreement: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dedicated |  |  | 914 |  |  |  | (274 | ) |  |  | 640 |  |  |  |  |
Managed Freight |  |  | 130 |  |  |  | (39 | ) |  |  | 91 |  |  |  |  |
Warehousing |  |  | 356 |  |  |  | (107 | ) |  |  | 249 |  |  |  |  |
Total non-compete agreement |  |  | 1,400 |  |  |  | (420 | ) |  |  | 980 |  |  |  | 42 |
Customer relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dedicated |  |  | 14,072 |  |  |  | (1,759 | ) |  |  | 12,313 |  |  |  |  |
Managed Freight |  |  | 1,692 |  |  |  | (213 | ) |  |  | 1,479 |  |  |  |  |
Warehousing |  |  | 12,436 |  |  |  | (1,554 | ) |  |  | 10,883 |  |  |  |  |
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 106 months as of September 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) |  | $ | 1,152 |
2021 |  |  | 4,043 |
2022 |  |  | 2,350 |
2023 |  |  | 2,350 |
2024 |  |  | 2,350 |
2025 |  |  | 2,350 |
Thereafter |  |  | 10,575 |
(1) Excludes the nine months ended September 30, 2020.

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