Note 6 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and Intangible Assets

ASC 350 requires that goodwill be tested for impairment annually, unless potential interim indicators exist that could result in impairment. During 2012, the Company reduced the carrying amount of goodwill to approximately $45.0 million, from approximately $189.0 million in 2011. See note 3, Impairments, above. Although the Company has only one reporting segment, it considers its three territories (Alabama, Missouri, and New England) to be reporting units for purposes of goodwill impairment testing. As of December 31, 2012, goodwill for Alabama and Missouri represented 87.2% and 12.8%, respectively, of total goodwill for the Company. The Company performed its annual goodwill impairment testing as of October 1, 2012. With the detailed review of goodwill and long-lived assets conducted in second quarter 2012 by outside experts and the lack of any material change in the Company’s business since that review, the annual test was performed based on a qualitative assessment. Based on the results of its impairment test, the Company believes that it is more likely than not there is no further impairment of the goodwill balance as of December 31, 2012. The Company determined that no events or circumstances from October 1, 2012 through December 31, 2012 indicated that a further assessment was necessary.

Intangible assets are summarized as follows:

	December 31, 2011
	Carrying Value		Accumulated Amortization			Accumulated Impairments		Net Value
Customer relationships	$	29,429,882	$	(15,483,937	)	$	-	$	13,945,945
Contract relationships		19,600,000		(13,066,667	)		-		6,533,333
Non-competition		95,103		(44,080	)		-		51,023
Trade name		16,200		(810	)		-		15,390
Total	$	49,141,185	$	(28,595,494	)	$	-	$	20,545,691

	December 31, 2012
	Carrying Value		Accumulated Amortization			Accumulated Impairments			Net Value
Customer relationships	$	29,429,882	$	(18,065,687	)	$	(5,728,889	)	$	5,635,306
Contract relationships		19,600,000		(18,579,167	)		-			1,020,833
Non-competition		95,103		(74,672	)		(12,452	)		7,979
Trade name		16,200		(3,267	)		(6,659	)		6,274
Total	$	49,141,185	$	(36,722,793	)	$	(5,748,000	)	$	6,670,392

These intangible assets have a range of 2 to 15 years of useful lives and utilize both the sum-of-the-years’ digits and straight-line methods of amortization, as appropriate. The following table presents current and expected amortization expense of the existing intangible assets as of December 31, 2012 for each of the following periods:

Aggregate amortization expense:
For the year ended December 31, 2010	$	8,271,338
For the year ended December 31, 2011	$	7,117,951
For the year ended December 31, 2012	$	8,129,326

Expected amortization expense for the years ending December 31,

2013	$	2,596,453
2014		1,203,289
2015		761,030
2016		523,611
2017		404,889
Thereafter		1,181,120
Total	$	6,670,392

- 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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