Management Contracts

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

Management Contracts

Note H - Management Contracts

During the second quarter of 2011, as part of the Company's combination with Eola, Parkway purchased the management contracts associated with Eola's property management business.  At the purchase date, the contracts were valued by an independent appraiser at $52.0 million.  The value of the management contracts is based on the sum of the present value of future cash flows attributable to the management contracts, in addition to the value of tax savings as a result of the amortization of intangible assets.  During the second quarter of 2011, the Company recorded amortization expense of $419,000 on the management contracts.  Also, in conjunction with the valuation of the management company, the Company recorded $11.4 million of goodwill.  At June 30, 2011, the allocation of purchase price is still preliminary.