Goodwill And Intangible Assets

6 Months Ended

Jun. 30, 2014

Goodwill And Intangible Assets [Abstract]

NOTE 3 — GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by reporting unit were as follows (in thousands):


	License and Services					Customer Support		Total
		U.S.		UK		UK		Goodwill
Balance as of December 31, 2013	$	1,097	$	7,532	$	9,307	$	17,936
Effects of changes in foreign
currency exchange rates (1)		-		254		314		568
Balance at June 30, 2014	$	1,097	$	7,786	$	9,621	$	18,504

(1)

Represent primarily the impact of foreign currency translation for instances when goodwill is recorded in foreign entities whose functional currency is also their local currency. Goodwill balances are translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income.

We conducted our annual goodwill impairment test as of July 31, 2013, and we determined that goodwill was not impaired as of the test date. From July 31, 2013 through the date of this report, no events have occurred that we believe may have impaired goodwill.

We amortized identifiable intangible assets on a straight-line basis over their estimated lives ranging from one to seven years and include the cumulative effects of foreign currency exchange rates. As of June 30, 2014 and December 31, 2013, identifiable intangibles were as follows (in thousands):


	June 30, 2014						December 31, 2013
		Gross Amount		Accumulated Amortization		Net Carrying Amount		Gross Amount		Accumulated Amortization		Net Carrying Amount	Weighted-Average Amortization Period
Purchased software	$	439	$	37	$	402	$	439	$	9	$	430	4.6 yrs
Trademarks and tradenames		63		8		55		63		2		61	3.8 yrs
Customer relationships		216		18		198		216		5		211	4.6 yrs
	$	718	$	63	$	655	$	718	$	16	$	702	4.54 yrs

Amortization expense of identifiable intangible assets was $24,000 and $0.1 million for the three months and $47,000 and $0.2 million for the six months ended June 30, 2014 and 2013, respectively. Expected future amortization expense related to identifiable intangibles based on our carrying amount as of June 30, 2014 was as follows (in thousands):


Twelve months ending June 30,
2015	$	95
2016		94
2017		94
2018		94
2019		86
Thereafter		192
	$	655

- 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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