Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangibles

v3.21.1
Goodwill and Intangibles
3 Months Ended
Mar. 31, 2021
Goodwill and Intangibles  
Goodwill and Intangibles

(3) Goodwill and Intangibles

The Company evaluates goodwill for impairment annually during the fourth quarter and whenever events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit with goodwill is less than its carrying amount. Significant assumptions used to estimate the reporting units’ fair value include the discount rate as well as estimates of future cash flows, which are impacted primarily by commodity prices and producer customers’ development plans (which impact volumes and capital requirements).

During the first quarter of 2020, the Company performed an interim impairment analysis of the goodwill due to changes in Antero Resources’ drilling plans as a result of the decline in commodity prices. As a result of this evaluation, the Company impaired all remaining goodwill of $575 million associated with its gathering and processing segment in the first quarter of 2020.

All customer relationships are subject to amortization and are amortized over a weighted-average period of 21 years, which reflects the remaining economic life of the relationships as of March 31, 2021. The changes in the carrying amount of customer relationships for the three months ended March 31, 2021 were as follows (in thousands):

Customer relationships as of December 31, 2020

$

1,427,447

Amortization of customer relationships

(17,668)

Customer relationships as of March 31, 2021

$

1,409,779

Future amortization expense is as follows (in thousands):

Remainder of year ending December 31, 2021

$

53,004

Year ending December 31, 2022

70,672

Year ending December 31, 2023

70,672

Year ending December 31, 2024

70,672

Year ending December 31, 2025

70,672

Thereafter

1,074,087

Total

$

1,409,779