Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Other Intangible Assets [Abstract]

4. Goodwill and Intangible Assets

Goodwill

The Company reviews goodwill for impairment annually as of December 31 and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company tests goodwill at the reporting unit level. A reporting unit is an operating segment, or one level below an operating segment, as defined by U.S. generally accepted accounting principles. After the acquisition of Hyperspring on November 14, 2014, the Company determined that it had two reporting units which are the same as the two operating segments: (i) Performance Improvement Solutions; and (ii) Nuclear Industry Training and Consulting (which includes Hyperspring). As of December 31, 2015 and 2014, goodwill of $5.6 million related to the Nuclear Industry Training and Consulting segment. No impairment of goodwill was recorded in 2015 or 2014.

Intangible Assets Subject to Amortization

The following table shows the gross carrying amount and accumulated amortization of definite-lived intangible assets:

(in thousands)	As of December 31, 2015
	Gross Carrying Amount				Accumulated Amortization				Net
Amortized intangible assets:
Customer relationships		$	1,425			$	(1,061	)		$	364
Non-contractual customer relationships			911				(669	)			242
Developed technology			471				(295	)			176
In process research and development			152				(142	)			10
Contract backlog			36				(36	)			-
Trade names and other			29				(29	)			-
Foreign currency translation			(28	)			11				(17	)
Total		$	2,996			$	(2,221	)		$	775

(in thousands)	As of December 31, 2014
	Gross Carrying Amount				Accumulated Amortization				Net
Amortized intangible assets:
Customer relationships		$	1,425			$	(695	)		$	730
Non-contractual customer relationships			911				(618	)			293
Developed technology			471				(236	)			235
In process research and development			152				(136	)			16
Contract backlog			36				(36	)			-
Trade names and other			29				(29	)			-
Foreign currency translation			7				(2	)			5
Total		$	3,031			$	(1,752	)		$	1,279

Amortization is recognized on a straight-line basis over the estimated useful life of the intangible asset, except for contractual customer relationships and contract backlog for which amortization is recognized in proportion to the related projected revenue stream. The Company reviews specific definite-lived intangible assets for impairment when events occur that may impact their value in accordance with the respective accounting guidance for long-lived assets. No impairment charges were recorded for the years ended December 31, 2015 and 2014.

Amortization expense related to definite-lived intangible assets totaled $494,000 and $193,000 for the years ended December 31, 2015 and 2014, respectively. The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years and thereafter:

(in thousands)
Years ended December 31,:
2016	$	294
2017		204
2018		158
2019		71
2020		33
Thereafter		15
	$	775

- 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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