Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangibles

v3.21.2
Goodwill and Intangibles
9 Months Ended
Sep. 30, 2021
Goodwill and Intangibles  
Goodwill and Intangibles

(3) Goodwill and Intangibles

During the first quarter of 2020, the Company performed an interim impairment analysis of its 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. Significant assumptions used to estimate the reporting units’ fair value included the discount rate as well as estimates of future cash flows, which were impacted primarily by commodity prices and producer customers’ development plans (which impact volumes and capital requirements).

All customer relationships are subject to amortization and are amortized over a weighted average period of 20 years, which reflects the remaining economic life of the relationships as of September 30, 2021. The changes in the carrying amount of customer relationships for the nine months ended September 30, 2021 were as follows (in thousands):

Customer relationships as of December 31, 2020

$

1,427,447

Amortization of customer relationships

(53,004)

Customer relationships as of September 30, 2021

$

1,374,443

Future amortization expense is as follows (in thousands):

Remainder of year ending December 31, 2021

$

17,668

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

$

1,374,443