Goodwill and Intangibles

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the carrying amount of goodwill are as follows (in thousands):



	Personal Information Services Reporting Unit			Insurance and Other Consumer Services Reporting Unit			Bail Bonds Industry Solutions Reporting Unit			Totals
Balance as of December 31, 2017:
Gross carrying amount	$	35,253		$	10,665		N/A			45,918
Accumulated impairment losses	(25,837		)	(10,318		)	N/A			(36,155	)
Net carrying value of goodwill	9,416			347			N/A			9,763

Balance as of December 31, 2016:
Gross carrying amount	$	35,253		$	10,665		$	1,390		47,308
Accumulated impairment losses	(25,837		)	(10,318		)	(1,390		)	(37,545	)
Net carrying value of goodwill	9,416			347			—			9,763

We performed the following interim and annual (October 31) goodwill impairment tests. The results are summarized below:



Reporting Unit	Impairment Test Date	Fair value substantially in excess of carrying value	Percentage, if not substantially in excess	Impairment charge (in thousands)
Personal Information Services (1)	October 31, 2017	Yes	N/A	N/A
Insurance and Other Consumer Services (1)	October 31, 2017	Yes	N/A	N/A
Personal Information Services	October 31, 2016	Yes	N/A	N/A
Insurance and Other Consumer Services (2)	August 31, 2016	Yes	N/A	N/A

(1)

As of October 31, 2017, both our Personal Information Services and Insurance and Other Consumer Services reporting units had a negative carrying amount of net assets. Upon the adoption of ASU 2017-04, we are no longer required to perform a qualitative assessment for reporting units with negative carrying amounts to determine if additional impairment testing is required. For additional information, please see Note 3. We considered other qualitative and quantitative factors and determined that it was more likely than not that the fair value was substantially in excess of the negative carrying value for each of our reporting units.

(2)

As of October 31, 2016, our annual testing date, we determined that it was more likely than not that the fair value was substantially in excess of its carrying value based upon qualitative factors and the results of our interim impairment test. We tested for impairment as of August 31, 2016 due to the reclassification of our Habits at Work business from our Insurance and Other Consumer Services segment to our Personal Information Services segment. Therefore, it was not necessary to perform the first step of the impairment testing for the Insurance and Other Consumer Services reporting unit at October 31, 2016.

As of December 31, 2017, we believe that both the estimated fair values of our Personal Information Services and Insurance and Other Consumer Services reporting units are substantially in excess of their respective carrying values and therefore are not at-risk of being impaired. To the extent our Personal Information Services or Insurance and Other Consumer Services reporting units realize actual operating results in the future below forecasted results, or realize decreases in forecasted results as compared to previous forecasts (including, but not limited to, actual to forecasted negative variances as the result of increased subscriber cancellation rates or significant subscriber portfolio cancellations), or in the event the estimated fair value of those reporting units decrease (as a result, among other things, of changes in market capitalization, including further declines in our stock price), we may incur goodwill impairment charges in the future. Future impairment charges on our Personal Information Services reporting unit will be recognized in the operating results of our Personal Information Services segment and our Insurance and Other Consumer Services segment, based on a pro-rata allocation of goodwill.

Intangible Assets

Our intangible assets consisted of the following (in thousands):



	Gross Carrying Amount			Accumulated Amortization			Impairment			Net Carrying Amount
As of December 31, 2017
Amortizable intangible assets:
Customer related	$	38,831		$	(38,831	)	$	—		$	—
Marketing related	2,727			(2,709		)	—			18
Technology related	1,739			(1,699		)	—			40
Total amortizable intangible assets at December 31, 2017	$	43,297		$	(43,239	)	$	—		$	58
As of December 31, 2016
Amortizable intangible assets:
Customer related	$	38,874		$	(38,822	)	$	(17	)	$	35
Marketing related	3,336			(3,143		)	(138		)	55
Technology related	4,068			(3,197		)	(751		)	120
Subtotal	46,278			(45,162		)	(906		)	210
Less: held for sale	(2,056		)	1,818			238			—
Total amortizable intangible assets at December 31, 2016	$	44,222		$	(43,344	)	$	(668	)	$	210

During the year ended December 31, 2017, there were no adverse changes in our long-lived assets, which would cause a need for an impairment analysis. Intangible assets decreased in the year ended December 31, 2016 primarily due to the full impairment of assets associated with our Pet Health Monitoring segment and Habits at Work business, both of which were sold in 2017.

Intangible assets are amortized over a period of two to ten years. For the years ended December 31, 2017 and 2016 we had an aggregate amortization expense of $152 thousand and $513 thousand, respectively, which was included in amortization expense in our consolidated statements of operations. We estimate that we will have the following amortization expense for the future periods indicated below (in thousands):



For the year ending December 31, 2018	$	58
Total	$	58

- 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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