GOODWILL AND INTANGIBLE ASSETS, NET

3 Months Ended

Mar. 31, 2014

NOTE 7 — GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

There were no changes in goodwill during the three months ended March 31, 2014. The following is a summary of goodwill by segment:

	Mortgage		Financial		Technology
(in thousands)	Services(1)		Services		Services		Total

Balance, March 31, 2014 and December 31, 2013	$	12,958	$	2,378	$	84,078	$	99,414

(1) December 31, 2013 goodwill has been revised to reflect a purchase accounting measurement period adjustment related to the Homeward acquisition. See Note 3.

Intangible Assets, Net

Intangible assets, net consist of the following:

	Weighted
	average
	estimated	Gross carrying amount				Accumulated amortization						Net book value
	useful life	March 31,		December 31,		March 31,			December 31,			March 31,		December 31,
(dollars in thousands)	(years)	2014		2013		2014			2013			2014		2013

Definite lived intangible assets
Trademarks	14	$	12,249	$	12,249	$	(4,652	)	$	(4,534	)	$	7,597	$	7,715
Customer-related intangible assets	10	284,484		284,484		(53,093		)	(44,208		)	231,391		240,276
Operating agreement	20	35,000		35,000		(7,292		)	(6,854		)	27,708		28,146
Non-compete agreement	4	—		1,300		—			(1,275		)	—		25
Intellectual property	10	300		—		—			—			300		—

Total		$	332,033	$	333,033	$	(65,037	)	$	(56,871	)	$	266,996	$	276,162

Amortization expense for definite lived intangible assets was $9.5 million and $1.2 million for the three months ended March 31, 2014 and 2013, respectively. Expected annual definite lived intangible asset amortization for 2014 through 2018 is $43.4 million, $40.6 million, $34.6 million, $29.2 million and $24.1 million, respectively.

- 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.

+ References+ Details