Forward Air Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Acquisitions and Goodwill (Tables)

Acquisitions and Goodwill (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Purchase Price Allocation [Table Text Block]

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



	Atlantic		KCL
	May 7, 2017		October 22, 2017
Tangible assets:
Property and equipment	$	1,821	$	223
Total tangible assets	1,821		223
Intangible assets:
Non-compete agreements	1,150		6
Customer relationships	13,400		234
Goodwill	6,719		277
Total intangible assets	21,269		517
Total assets acquired	23,090		740

Liabilities assumed:
Current liabilities	590		100
Total liabilities assumed	590		100
Net assets acquired	$	22,500	$	640

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

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



	Useful Lives
	Atlantic	KCL
Customer relationships	15 years	15 years
Non-compete agreements	5 years	2 years

Schedule of Significant Assumptions Used [Table Text Block]

For our 2018 analysis, the significant assumptions used for the income approach were projected net cash flows and

the following discount and long-term growth rates:



	Expedited LTL		Pool		Intermodal		TQI
Discount rate	12.0	%	15.5	%	14.0	%	16.5	%
Long-term growth rate	4.0	%	4.0	%	4.0	%	4.0	%

Schedule of Goodwill [Table Text Block]

There were no changes to goodwill for the six months ended June 30, 2018. Approximately $112,527 of goodwill is deductible for tax purposes. The following is a summary of the goodwill balances as of June 30, 2018.



	Ending balance, June 30, 2018
Expedited LTL
Goodwill	$	97,593
Accumulated Impairment	—

TLS
Goodwill	45,164
Accumulated Impairment	(25,686		)

Pool Distribution
Goodwill	12,359
Accumulated Impairment	(6,953		)

Intermodal
Goodwill	69,194
Accumulated Impairment	—

Total	$	191,671