Forward Air Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Acquisitions, Goodwill and Other Long-Lived Assets Acquisitions, Goodwill and Other Long-Lived Assets (Tables)

Acquisitions, Goodwill and Other Long-Lived Assets Acquisitions, Goodwill and Other Long-Lived Assets (Tables)

12 Months Ended

Dec. 31, 2017

Purchase Price Allocation [Table Text Block]

The following table presents the allocations of the previously discussed purchase prices to the assets acquired and liabilities assumed based on their estimated fair values and resulting residual goodwill (in thousands):



	Towne		Ace & Triumph		Atlantic		KCL
	March 9, 2015		January & August 2016		May 7, 2017		October 22, 2017
Tangible assets:
Accounts receivable	$	24,068	$	—	$	—	$	—
Prepaid expenses and other current assets	2,916		—		—		—
Property and equipment	2,095		1,294		1,821		223
Other assets	614		—		—		—
Total tangible assets	29,693		1,294		1,821		223
Intangible assets:
Non-compete agreements	—		139		1,150		6
Customer relationships	66,000		5,335		13,400		234
Goodwill	59,666		6,282		6,719		277
Total intangible assets	125,666		11,756		21,269		517
Total assets acquired	155,359		13,050		23,090		740

Liabilities assumed:
Current liabilities	28,920		—		590		100
Other liabilities	3,886		1,250		—		—
Debt and capital lease obligations	59,544		—		—		—
Deferred income taxes	1,131		—		—		—
Total liabilities assumed	93,481		1,250		590		100
Net assets acquired	$	61,878	$	11,800	$	22,500	$	640

Business Acquisition, Pro Forma Information [Table Text Block]

The acquired definite-live intangible assets have the following useful lives:



	Useful Lives
	Towne	Ace & Triumph	Atlantic	KCL
Customer relationships	20 years	15 years	15 years	15 years
Non-competes	-	5 years	5 years	2 years

Schedule of Goodwill [Table Text Block]

The following is a summary of the changes in goodwill for the year ended December 31, 2017. Approximately $112,527 of goodwill is deductible for tax purposes.



	Expedited LTL				Truckload Premium					Pool Distribution					Intermodal				Total
			Accumulated				Accumulated					Accumulated					Accumulated
	Goodwill		Impairment		Goodwill		Impairment			Goodwill		Impairment			Goodwill		Impairment		Net
Ending balance, December 31, 2016	$	97,593	$	—	$	45,164	$	(25,686	)	$	12,359	$	(6,953	)	$	62,198	$	—	$	184,675
Atlantic & KCL Acquisitions	$	—	$	—	$	—	$	—		$	—	$	—		$	6,996	$	—	$	6,996
Ending balance, December 31, 2017	$	97,593	$	—	$	45,164	$	(25,686	)	$	12,359	$	(6,953	)	$	69,194	$	—	$	191,671

Definite-Lived Intangible Assets [Member]

Goodwill [Line Items]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

As of December 31, 2017, definite-lived intangible assets are comprised of the following:



	Acquired Intangibles		Accumulated Amortization		Accumulated Impairment		Net Acquired Intangibles
Customer relationships	$	193,209	$	66,986	$	16,501	$	109,722
Non-compete agreements	4,566		3,074		—		1,492
Trade name	1,500		1,467		—		33
Total	$	199,275	$	71,527	$	16,501	$	111,247

As of December 31, 2016, definite-lived intangible assets are comprised of the following:



	Acquired Intangibles		Accumulated Amortization		Accumulated Impairment		Net Acquired Intangibles
Customer relationships	$	179,575	$	57,390	$	16,501	$	105,684
Non-compete agreements	3,410		2,677		—		733
Trade name	1,500		1,267		—		233
Total	$	184,485	$	61,334	$	16,501	$	106,650

The estimated amortization expense for the next five years on definite-lived intangible assets as of December 31, 2017 is as follows:



	2018		2019		2020		2021		2022
Customer relationships	$	8,399	$	8,319	$	8,319	$	8,177	$	7,976
Non-compete agreements	464		289		259		246		78
Trade name	33		—		—		—		—
Total	$	8,896	$	8,608	$	8,578	$	8,423	$	8,054