Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2014

Note 4. Goodwill and Intangible Assets

The changes in goodwill, by business segment, for the six months ended June 30, 2014 are as follows (in thousands):

	Professional Services		Infrastructure Services		Field Services		Other Services			Total
Goodwill at December 31, 2013	$	8,604	$	1,882	$	58,463	$	185		$	69,134
Integration of the Other Services segment		—		—		185		(185	)		—
Purchase price allocation adjustment		44		—		—		—			44
Goodwill at June 30, 2014	$	8,648	$	1,882	$	58,648	$	—		$	69,178

In the first quarter of 2014, the Company integrated the Other Services segment with the Infrastructure Services, Professional Services and Field Services segments, and as a result the Company no longer has an Other Services segment.

See Note 14 – Segments for further discussion on business segments.

Intangible assets as of June 30, 2014 are as follows (in thousands):

	Gross Carrying Amount		Accumulated Amortization		Impairment Charges		Intangible Assets, net
Customer contracts	$	13,900	$	1,270	$	—	$	12,630
Customer relationships		7,710		2,231		920		4,559
Tradename		3,860		1,110		—		2,750
Software		3,810		635		—		3,175
Noncompete agreements		3,150		840		—		2,310
Customer backlog		1,470		1,470		—		—
Total	$	33,900	$	7,556	$	920	$	25,424

The changes in intangible assets for the six months ended June 30, 2014 are as follows (in thousands):

Intangible assets, net at December 31, 2013	$	29,156
Amortization expense		2,812
Impairment charge		920
Intangible assets, net at June 30, 2014	$	25,424

During the second quarter of 2014, the Company closed its office in Sarasota, Florida. In connection with the office closure, the Company determined that certain customer relationships not related to carrier or large OEM customers that were primarily supported by the operations of the Sarasota office were impaired. As the impairment was a direct result of the 2014 Restructuring Plan, the impairment charge has been included in restructuring expense in the accompanying consolidated statements of operations.

- 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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