18. Goodwill and Other Intangible Assets
The following table shows the carrying amount of goodwill by business segment at December 31, 2013 and 2012:
| |
Nitrogen | Phosphate | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| |
(in millions) |
|||||||||
|
Balance at December 31, 2012 |
$ | 2,063.6 | $ | 0.9 | $ | 2,064.5 | ||||
|
Goodwill related to acquisitions of Canadian terminals |
32.2 | — | 32.2 | |||||||
|
Goodwill reclassified to non-current assets held for sale |
— | (0.9 | ) | (0.9 | ) | |||||
| | | | | | | | | | | |
|
Balance at December 31, 2013 |
$ | 2,095.8 | $ | — | $ | 2,095.8 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
During the fourth quarter of 2013, we acquired three ammonia terminals in Canada for an aggregate purchase price of $72.5 million. These facilities increase our distribution capabilities to customers in Western Canada. The acquired assets were recorded at the acquisition date fair value and are being depreciated in accordance with our existing depreciation policy over their remaining economic useful lives. The Company recognized $32.2 million of goodwill that represents the excess of the purchase price over the net fair value of the assets acquired, which is not deductible for income tax purposes.
The identifiable intangibles and carrying values are shown below. The Company's intangible assets are presented in noncurrent other assets on our consolidated balance sheets.
| |
December 31, 2013 | December 31, 2012 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
Gross Carrying Amount |
Accumulated Amortization |
Net | Gross Carrying Amount |
Accumulated Amortization |
Net | |||||||||||||
| |
(in millions) |
||||||||||||||||||
|
Intangible assets: |
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|
Customer Relationships |
$ | 50.0 | $ | (10.4 | ) | $ | 39.6 | $ | 50.0 | $ | (7.6 | ) | $ | 42.4 | |||||
|
TerraCair Brand |
10.0 | (3.8 | ) | 6.2 | 10.0 | (2.8 | ) | 7.2 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
|
Total intangible assets |
$ | 60.0 | $ | (14.2 | ) | $ | 45.8 | $ | 60.0 | $ | (10.4 | ) | $ | 49.6 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Amortization expense of our identifiable intangibles was $3.8 million, $3.8 million and $3.8 million for 2013, 2012 and 2011, respectively.
Total estimated amortization expense for the five succeeding fiscal years is as follows:
| |
Estimated Amortization Expense |
|||
|---|---|---|---|---|
| |
(in millions) |
|||
|
2014 |
$ | 4.0 | ||
|
2015 |
4.0 | |||
|
2016 |
4.0 | |||
|
2017 |
4.0 | |||
|
2018 |
4.0 | |||
| | | | | |
|
|
$ | 20.0 | ||
| | | | | |
| | | | | |