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Goodwill and Identifiable Intangible Assets
9 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identifiable Intangible Assets

Note 17: Goodwill and Identifiable Intangible Assets

In accordance with authoritative guidance, goodwill is tested at the reporting unit level annually for impairment and in interim periods if certain events occur indicating the fair value of a reporting unit may be below its carrying value.

As discussed in Note 2, “Discontinued Operations,” on May 16, 2012, the Company completed the sale of substantially all of the assets and certain liabilities of Ascension to AIS.

In connection with the preparation of its financial statements and based, in part, on the anticipated disposition of Ascension, the Company performed an interim goodwill impairment test for Ascension as of March 31, 2012 and concluded that Ascension’s entire goodwill balance of $9.9 million was impaired. Additionally, the Company wrote-off Ascension’s remaining identifiable intangible assets of approximately $0.4 million as of March 31, 2012.

As of September 30, 2012, the Company has two reporting units that carry goodwill: portfolio purchasing and recovery and tax lien transfer. Annual testing is performed as of October 1 st for the portfolio purchasing and recovery reporting unit and as of April 1 st for the tax lien transfer reporting unit.

 

The Company’s acquired intangible assets are summarized as follows (in thousands):

 

                                                 
    As of September 30, 2012     As of December 31, 2011  
    Gross
Carrying
Amount
    Accumulated
Amortization
    Net Carrying
Amount
    Gross
Carrying
Amount
    Accumulated
Amortization
    Net Carrying
Amount
 

Intangible assets subject to amortization:

                                               

Customer relationships

  $ —       $ —       $ —       $ 6,000     $ (5,538   $ 462  

Trade name and other

    570       (55     515       —         —         —    
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total intangible assets subject to amortization

  $ 570     $ (55   $ 515     $ 6,000     $ (5,538   $ 462  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Intangible assets not subject to amortization:

                                               

Goodwill – portfolio purchasing and recovery

                  $ 6,047                     $ 6,047  

Goodwill – tax lien transfer

                    49,399                       —    

Goodwill – bankruptcy servicing

                    —                         9,938  
                   

 

 

                   

 

 

 

Total goodwill

                  $ 55,446                     $ 15,985