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Goodwill and intangible assets | 9 Months Ended
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Sep. 30, 2019
Goodwill and intangible assets |
Goodwill and intangible assets | Note 6 - Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase method of accounting. In 2019, due to a significant selling price correction leading to unfavorable market conditions, the Company performed a quantitative test by weighting the results of an income-based valuation technique, the discounted cash flows method, and a market-based valuation technique to determine its reporting units’ fair values. Based on the results of the impairment assessments of goodwill and other intangible assets performed in 2018, the Company concluded that it is more likely than not that the fair value of its goodwill exceeds the carrying value and that there are no impairment indicators related to intangible assets. An impairment charge would be recognized when the carrying amount exceeds the estimated fair value of a reporting unit. These impairment evaluations use many assumptions and estimates in determining an impairment loss, including certain assumptions and estimates related to future earnings. If the Company does not achieve its earnings objectives, the assumptions and estimates underlying these impairment evaluations could be adversely affected, which could result in an asset impairment charge that would negatively impact operating results. The Company’s performance has continued to be negatively impacted by the challenging pricing environment affecting the industry and the market during 2019 resulting in an increase in inventory reserves for certain gases; however, the Company’s sales volume has increased in 2019 when compared to 2018. The Company determined as of September 30, 2019, that the year-to-date decline in revenue and operating loss, along with the decrease in the Company’s stock price during 2019 represented a triggering event which required a goodwill impairment test. Based on these indicators, the Company quantitatively evaluated its goodwill for impairment as of September 30, 2019 and determined that goodwill was not impaired. At September 30, 2019 the Company had $47.8 million of goodwill, of which $47.0 million is attributable to the acquisition of Aspen Refrigerants, Inc. on October 10, 2017. The Company’s other intangible assets consist of the following:
|  |  |  | September 30, 2019 |  | December 31, 2018
|  | Amortization |  | Gross |  |  |  |  |  |  |  | Gross |  |  |  |  |  |
|  | Period |  | Carrying |  | Accumulated |  |  |  |  | Carrying |  | Accumulated |  |  |
(in thousands) |  | (in years) |  | Amount |  | Amortization |  |  | Net |  | Amount |  | Amortization |  |  | Net
Intangible assets with determinable lives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Patents |  | 5 |  | $ | 386 |  | $ | 383 |  | $ | 3 |  | $ | 386 |  | $ | 380 |  | $ | 6
Covenant not to compete |  | 6 - 10 |  |  | 1,270 |  |  | 744 |  |  | 526 |  |  | 1,270 |  |  | 629 |  |  | 641
Customer relationships |  | 10 - 12 |  |  | 31,560 |  |  | 5,840 |  |  | 25,720 |  |  | 31,660 |  |  | 3,952 |  |  | 27,708
Above market leases |  | 13 |  |  | 567 |  |  | 88 |  |  | 479 |  |  | 567 |  |  | 54 |  |  | 513
Licenses |  | 10 |  |  | — |  |  | — |  |  | — |  |  | 1,000 |  |  | 417 |  |  | 583
Totals identifiable intangible assets |  |  |  | $ | 33,783 |  | $ | 7,055 |  | $ | 26,728 |  | $ | 34,883 |  | $ | 5,432 |  | $ | 29,451
Amortization expense for the nine months ended September 30, 2019 and 2018 was $2.2 million for both periods. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. During the third quarter of 2019, the company recorded approximately $0.5 million of impairment changes with the shutdown of its Nashville and Puerto Rico facilities. No other impairment charges were recognized for the nine month period ended September 30, 2019 and for the year ended December 31, 2018.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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