| |
G. | GOODWILL AND INTANGIBLE ASSETS |
Goodwill - The following table sets forth our goodwill by segment for the periods indicated:
|
| | | | | | | | | | | | | | | |
| ONEOK Partners | | Natural Gas Distribution | | Energy Services | | Total |
| (Thousands of dollars) |
December 31, 2012 | $ | 433,535 |
| | $ | 157,953 |
| | $ | — |
| | $ | 591,488 |
|
Acquisitions | 92,000 |
| | — |
| | — |
| | 92,000 |
|
December 31, 2013 | $ | 525,535 |
| | $ | 157,953 |
| | $ | — |
| | $ | 683,488 |
|
As a result of our 2012 interim impairment assessment of our Energy Services segment’s goodwill, goodwill with a carrying amount of $10.3 million was written down to its implied fair value of zero, with a resulting impairment charge of $10.3 million recorded in 2012 earnings. For the remaining segments, Natural Gas Distribution and ONEOK Partners, there were no impairment indicators as the cash flows generated from each of these segments are derived from predominately fee-based, nondiscretionary services. There were no impairment charges resulting from our 2013 or 2011 annual impairment tests.
Intangible Assets - The following table sets forth the gross carrying amount and accumulated amortization of intangible assets for the periods indicated:
|
| | | | | | | | |
| | December 31, | | December 31, |
| | 2013 | | 2012 |
| | (Thousands of dollars) |
Gross intangible assets | | $ | 565,215 |
| | $ | 462,214 |
|
Accumulated amortization | | (66,188 | ) | | (57,496 | ) |
Net intangible assets | | $ | 499,027 |
| | $ | 404,718 |
|
At December 31, 2013 and 2012, our ONEOK Partners segment has $343.5 million and $249.2 million, respectively, of intangible assets related primarily to contracts acquired through acquisition, which are being amortized over a period of 20 to 40 years. The remaining intangible asset balance has an indefinite life. Amortization expense for intangible assets for 2013, 2012 and 2011 was $8.7 million, $7.7 million and $7.7 million, respectively, and the aggregate amortization expense for each of the next five years is estimated to be approximately $11.3 million.
Acquisition - On September 30, 2013, ONEOK Partners completed the acquisition of a business, the Sage Creek acquisition. Included in this acquisition were supply contracts with acreage dedications and customer relationships that were included as intangible assets of $103 million in the purchase price allocation. The $92 million excess of purchase price over the fair value of the identifiable assets acquired was recorded as goodwill. For additional information related to the acquisition, see Note Q of the Notes to Consolidated Financial Statements in this Annual Report.
