Goodwill and Amortizable Intangible Assets

3 Months Ended

Mar. 31, 2012

Goodwill and Amortizable Intangible Assets [Abstract]

Goodwill and Amortizable Intangible Assets

(8) Goodwill and Amortizable Intangible Assets — Goodwill of $131.0 million at March 31, 2012 resulted from the March 3, 2011 acquisition of Amcom. Goodwill is not amortized but evaluated for impairment at least annually, or when events or circumstances suggest a potential impairment has occurred. We have selected the fourth quarter to perform this annual impairment test. We will evaluate goodwill for impairment between annual tests if indicators of impairment exist. GAAP requires the comparison of the fair value of the reporting unit to the carrying amount to determine if there is potential impairment. For this determination, our software segment is considered the reporting unit. If the fair value of the reporting unit is less than its carrying value, an impairment loss is required to be recorded to the extent that the implied value of goodwill within the reporting unit is less than the carrying value. The fair value of the reporting unit is determined based upon generally accepted valuation methodologies such as market capitalization, discounted cash flows or other methods as deemed appropriate.

Other intangible asset for wireless operations consisted of a non-compete agreement with a former executive which is being amortized over a three year period. Other intangible assets for software operations were recorded at fair value on the date of acquisition and are being amortized over periods ranging from two to fifteen years.

The gross carrying amount of amortizable intangible assets for the wireless operations was $0.4 million, and $43.6 million for software operations at March 31, 2012. The accumulated amortization for wireless operations was $0.2 million and $6.6 million for software operations. The net consolidated balance of amortizable intangible assets consisted of the following:

		March 31, 2012
	Useful Life (In Years)	Gross Carrying Amount		Accumulated Amortization		Net Balance
		(Dollars in thousands)
Customer relationships	10	$	25,002		$    (2,709)	$	22,293
Acquired technology	2 - 4		7,083		(2,176)		4,907
Non-compete agreements	3 - 5		6,182		(1,461)		4,720
Trademarks	15		5,702		(412)		5,290
Total amortizable intangible assets		$	43,969	$	(6,758)	$	37,211

Estimated amortization of intangible assets for future periods was as follows:

	(Dollars in thousands)
For the remaining nine months ending December 31, 2012	$	4,637
For the year ending:
December 31, 2013		5,750
December 31, 2014		5,564
December 31, 2015		4,286
December 31, 2016		3,072
Thereafter		13,902
Total amortizable intangible assets	$	37,211