Goodwill and Intangibles

9 Months Ended

Feb. 29, 2012

Goodwill and Intangibles [Abstract]

Goodwill and Intangibles

Note 6: Goodwill and Intangibles

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets consist of purchased customer relationships and trade names.

Our goodwill and intangibles at February 29, 2012 are the result of our acquisition of EMT on August 24, 2011, Telogy on March 31, 2010 and of Rush Computer Rentals, Inc. on January 31, 2006.

The changes in carrying amount of goodwill and other intangible assets for the nine months ended February 29, 2012 were as follows:

	Balance as of June 1, 2011 (net of amortization)		Additions		Amortization			Balance as of February 29, 2012
Goodwill	$	3,109	$	—	$	—		$	3,109
Trade name		411		—		—			411
Customer relationships		803		140		(112	)		831
	$	4,323	$	140	$	(112	)	$	4,351

Goodwill is not deductible for tax purposes.

We evaluate the recoverability of goodwill and indefinite-lived intangible assets annually as of May 31, and whenever events or changes in circumstances indicate to us that carrying amount may not be recoverable. There were no conditions that indicated any impairment of goodwill or identifiable intangible assets as of May 31, 2011.

Intangible assets with finite useful lives are amortized over their respective estimated useful lives. The following table provides a summary of our intangible assets:

	February 29, 2012
	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Trade name		—	$	411	$	—		$	411
Customer relationships		3-8 years		2,094		(1,263	)		831
			$	2,505	$	(1,263	)	$	1,242

	May 31, 2011
	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Trade name		—	$	411	$	—		$	411
Customer relationships		3-8 years		1,954		(1,151	)		803
			$	2,365	$	(1,151	)	$	1,214

Amortization expense related to intangible assets was $42 and $112 for the three and nine months ended February 29, 2012, respectively, compared to $46 and $155 for the three and nine months ended February 28, 2011, respectively.

Amortization expense for customer relationships is included in selling, general and administrative expenses. The following table provides estimated future amortization expense related to intangible assets as of February 29, 2012:

Year ending May 31,	Future Amortization
2012 (remaining)	$	41
2013		164
2014		164
2015		129
2016		118
Thereafter		215
	$	831