Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets, Net [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

NOTE 6 — GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

There were no changes in goodwill during the three months ended March 31, 2012. The following is a summary of goodwill by segment:

		$10,919		$10,919		$10,919		$10,919
	Mortgage		Financial		Technology
(in thousands)	Services		Services		Services		Total
Balance, March 31, 2012	$	10,919	$	2,378	$	1,618	$	14,915
Balance, December 31, 2011	$	10,919	$	2,378	$	1,618	$	14,915

Intangible Assets, Net

Intangible assets, net consist of the following:

	December 31		December 31		December 31		December 31			December 31			December 31		December 31
	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)	2012		2011		2012			2011			2012		2011
Definite-lived intangible
Assets
Trademarks	16	$	10,614	$	10,614	$	(3,612	)	$	(3,353	)	$	7,002	$	7,261
Customer lists	19		38,366		38,366		(14,408	) (a)		(13,010	)		23,958		25,356
Operating agreement	20		35,000		35,000		(3,792	)		(3,354	)		31,208		31,646
Non-compete agreement	4		1,300		1,300		(700	)		(613	)		600		687
Total intangible assets		$	85,280	$	85,280	$	(22,512	)	$	(20,330	)	$	62,768	$	64,950

(a) Prior to our acquisition of Nationwide Credit, Inc. (“NCI ^®”) in 2007, NCI completed an acquisition which created tax-deductible goodwill that amortizes for tax purposes over time. When we acquired NCI in 2007, we recorded a lesser amount of goodwill for financial reporting purposes than what had previously been recorded at NCI for tax purposes. This difference between the amount of goodwill recorded for financial reporting purposes and the amount recorded for taxes is referred to as “Component 2” goodwill and resulted in our recording periodic reductions first to our book goodwill balance in our consolidated financial statements. As our book goodwill balance was fully written off at December 31, 2010, we continue to amortize the remaining Component 2 goodwill for U.S. tax purposes by reducing certain intangible assets by the remaining tax benefits of the Component 2 goodwill as they are realized in our tax returns. The amount amortized was $0.8 million and $0.9 million for the three months ended March 31, 2012 and 2011, respectively. The balance of Component 2 goodwill remaining was $4.2 million as of March 31, 2012 which should generate $2.5 million of reductions of intangible assets when the benefit can be realized for U.S. tax purposes.

Amortization expense for definite lived intangible assets was $1.3 million for each of the three months ended March 31, 2012 and 2011, respectively. Amortization expense is estimated to be $5.0 million for 2012, $4.8 million for 2013, $4.5 million for 2014, $4.4 million for 2015 and $4.3 million for 2016.