Quarterly report pursuant to Section 13 or 15(d)

Goodwill And Other Intangible Assets And Liabilities

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Goodwill And Other Intangible Assets And Liabilities
9 Months Ended
Sep. 30, 2011
Goodwill And Other Intangible Assets And Liabilities [Abstract]  
Goodwill And Other Intangible Assets And Liabilities

NOTE 6 – GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES

Goodwill

The following table summarizes changes in the carrying amount of goodwill allocated by reporting unit for the nine months ended September 30, 2011 and the year ended December 31, 2010:

 

Goodwill is not subject to amortization and is tested for impairment annually or when events or circumstances indicate that impairment may have occurred.

Other Intangible Assets and Liabilities

Following is a summary of intangible assets and liabilities as of September 30, 2011 and December 31, 2010:

 

 

The intangible assets are subject to periodic amortization on a straight-line basis over their estimated useful lives as follows:

 

Intangible Asset

   Useful Life (years)

Permits

   15 - 28

Utility contracts

   5

Easements

   30

Leases

   1.5 - 4.5

Amortization expense relating to intangible assets was $3.3 million and $12.5 million, respectively, for the three and nine months ended September 30, 2011, and is recognized in Cost of goods sold and operating expenses on the Statements of Unaudited Condensed Consolidated Operations. Amortization expense relating to intangible assets was $5.6 million and $13.5 million, respectively, for the comparable periods in 2010. The estimated amortization expense relating to intangible assets for the remainder of 2011 and each of the five succeeding fiscal years is as follows:

 

     (In Millions)  
     Amount  

Year Ending December 31

  

2011 (remaining three months)

     $ 4.5     

2012

     18.0     

2013

     17.9     

2014

     17.9     

2015

     6.0     

2016

     6.0     
  

 

 

 

Total

     $       70.3     
  

 

 

 

The below-market sales contracts are classified as a liability and recognized over the remaining terms of the underlying contracts, which range from 3.5 to 8.5 years. For the three and nine months ended September 30, 2011, we recognized $16.7 million and $40.4 million, respectively, in Product revenues related to the below-market sales contracts, compared with $22.9 million and $34.7 million, respectively, for the three and nine months ended September 30, 2010. The following amounts will be recognized in earnings for the remainder of 2011 and each of the five succeeding fiscal years:

 

     (In Millions)  
     Amount  

Year Ending December 31

  

2011 (remaining three months)

     $ 17.9     

2012

     48.8     

2013

     45.3     

2014

     23.0     

2015

     23.0     

2016

     23.1     
  

 

 

 

Total

     $       181.1