INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The composition, gross carrying amount and accumulated amortization of our identifiable intangible assets are as follows as of the dates indicated:


	September 30, 2023		December 31, 2022
	(in thousands)
Carrying amount:
Customer service agreements	$	—	$	3,832
Other	55		—
Total carrying amount	55		3,832
Accumulated amortization:
Customer service agreements	—		(306)
Other	(4)		—
Total accumulated amortization	(4)		(306)
Total intangible assets, net	$	51	$	3,526

Our current intangible assets at September 30, 2023, originated as internally developed software for internal use. Refer to Note 2. Summary of Significant Accounting Policies — Internal-use Software for further details.

Amortization expense associated with intangible assets totaled $0.1 million for the nine months ended September 30, 2023 and $3.2 million and $9.5 million for the three and nine months ended September 30, 2022, respectively. We had no significant amortization expense for the three months ended September 30, 2023.

Our identifiable intangible assets through December 31, 2022, originated from the acquisition of the Casper Terminal. As previously discussed in Note 7. Property and Equipment, at September 30, 2022 we tested our Casper Terminal asset group for impairment due to recurring periods where cash flow projections were not met due to adverse market conditions at our Casper Terminal, which we determined was a triggering event that required us to

evaluate our Casper Terminal asset group for impairment. Our estimate of fair value required us to use significant unobservable inputs representative of a Level 3 fair value measurement.

We measured the fair value of our Casper Terminal asset group by primarily relying on the cost approach and allocated a portion of that impairment to intangible assets. We determined that the carrying amount of our Casper terminal reporting unit exceeded its fair value at September 30, 2022. Accordingly, we recognized an impairment loss of $35.6 million in our intangible assets and included this charge in “Impairment of intangible and long-lived assets” within our consolidated statements of operations for the three and nine months ended September 30, 2022. At December 31, 2022, we had a remaining intangible asset balance of $3.5 million in our consolidated balance sheet. Subsequently, on March 31, 2023, we sold our Casper Terminal as discussed in Note 3. Acquisitions and Dispositions and removed the remaining balances recorded in our intangible assets associated with the Casper Terminal.

USD Partners LP 10-Q