Management Contracts

3 Months Ended

Mar. 31, 2013

Management Contracts [Abstract]

Management Contracts

Note F – 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 December 31, 2012, the contracts were valued by an independent appraiser at $19.0 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 three months ended March 31, 2013, the Company recorded amortization expense of $1.8 million on the management contracts.  At March 31, 2013, management contracts, net of accumulated amortization totaled $17.2 million.