Note 4 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Text Block]

4.	Goodwill and Intangible Assets

ASC 350 requires that goodwill be tested for impairment annually, unless potential interim indicators exist that could result in impairment. 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, 2015, goodwill for Alabama, Missouri, and New England represented 87.2%, 12.8%, and less than 1

.0%, respectively, of total goodwill for the Company. The Company performed its annual goodwill impairment testing as of October 1, 2015 and concluded that no impairment was present in any of its reporting units. The Company determined that no events or circumstances from October 1, 2015 through December 31, 2015 indicated that a further assessment was necessary.

There was no change in the carrying amounts of goodwill for Alabama and Missouri during 2015, with a balance of $39,199 thousand and $5,758 thousand, respectively as of both December 31, 2014 and 2015. During 2014, the carrying amount of goodwill for New England increased by $19 thousand, due to the purchase of substantially all of the assets of Reliable Networks, to a balance of $44,976 thousand as of December 31, 2014. There was no change in the carrying amount of goodwill for New England during 2015.

Intangible assets are summarized as follows (in thousands):

	December 31, 2013
	Carrying Value		Accumulated Amortization			Net Book Value
Customer relationships	$	23,701	$	(19,632	)	$	4,069
Contract relationships		19,600		(19,600	)		-
Non-competition		83		(83	)		-
Trade name		9		(4	)		5
Total	$	43,393	$	(39,319	)	$	4,074

	December 31, 2014
	Carrying Value		Accumulated Amortization			Net Book Value
Customer relationships	$	24,025	$	(20,880	)	$	3,145
Contract relationships		19,600		(19,600	)		-
Non-competition		107		(89	)		18
Trade name		23		(8	)		15
Total	$	43,755	$	(40,577	)	$	3,178

	December 31, 2015
	Carrying Value		Accumulated Amortization			Net Book Value
Customer relationships	$	24,025	$	(21,685	)	$	2,340
Contract relationships		19,600		(19,600	)		-
Non-competition		107		(95	)		12
Trade name		23		(12	)		11
Total	$	43,755	$	(41,392	)	$	2,363

These intangible assets had a range of 2 to 15 years of useful lives at inception and utilize both the sum-of-the-years’ digits and straight-line methods of amortization, as appropriate. The following tables present historical and expected amortization expense of the existing intangible assets as of December 31, 2015 for each of the following periods (in thousands):

Aggregate amortization expense for the years ended December 31,

2013	$	2,597
2014	$	1,258
2015	$	815

Expected amortization expense for the years ending December 31,

2016	$	578
2017		458
2018		408
2019		389
2020		372
Thereafter		158
Total	$	2,363

- 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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