GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Mar. 31, 2013

GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]

NOTE 6—GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL

As a result of our acquisition of substantially all of the assets of ChoicePay, Inc. in January 2009, ChoicePay, Inc. has the potential to receive an earn out of up to $2.0 million through December 31, 2013, based upon a percentage of the gross profits generated by specific Client contracts. Any earn out is recorded as additional goodwill associated with the asset acquisition. The following table summarizes changes in the carrying amount of goodwill during the six months ended March 31, 2013:

(in thousands)	Payment Solutions		VSA		Discontinued Operations			Total
Goodwill	$	17,582	$	—	$	23,041		$	40,623
Accumulated impairment loss		0		—		(23,041	)		(23,041	)
Balance at September 30, 2012		17,582		—		0			17,582
ChoicePay, Inc. earn-out payments		60		—		0			60
Goodwill		17,642		—		23,041			40,683
Accumulated impairment loss		0		—		(23,041	)		(23,041	)
Balance at March 31, 2013	$	17,642	$	—	$	0		$	17,642

We test goodwill for impairment during the fourth quarter of each fiscal year at the reporting unit level using a fair value approach. If an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value, we evaluate goodwill for impairment between annual tests. No such events occurred during the six months ended March 31, 2013.

OTHER INTANGIBLE ASSETS, NET

All of our other intangible assets are finite lived and amortization related to these assets are reported in Continuing Operations. We test our other intangible assets for impairment when an event occurs or circumstances change that would more likely than not reduce the fair value of the assets below the carrying value. No such events occurred during the six months ended March 31, 2013. The following table summarizes Other intangible assets, net, for our Continuing Operations:

		March 31, 2013							September 30, 2012
(in thousands)	Amortization period	Gross		Accumulated amortization			Net		Gross		Accumulated amortization			Net
Client relationships	8-15 years	$	26,059	$	(25,472	)	$	587	$	26,059	$	(25,362	)	$	697
Technology and research and development	5 years		1,842		(1,665	)		177		1,842		(1,488	)		354
Trademarks	6-10 years		3,463		(3,435	)		28		3,463		(3,407	)		56
Other intangible assets, net		$	31,364	$	(30,572	)	$	792	$	31,364	$	(30,257	)	$	1,107

During the three months ended March 31, 2013 and March 31, 2012, we recognized $0.2 million and $0.9 million of amortization expense on our other intangible assets, respectively. During the six months ended March 31, 2013 and March 31, 2012, we recognized $0.3 million and $1.7 million of amortization expense on our other intangible assets, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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