Goodwill and Other Intangible Assets

12 Months Ended

May 31, 2012

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

Note 4: Goodwill and Other Intangible Assets

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.

The changes in carrying amount of goodwill and other intangible assets for fiscal 2012 and 2011 were as follows:

	Balance as of June 1, 2011 (net of amortization)		Additions		Amortization			Balance as of May 31, 2012
Goodwill	$	3,109	$	—	$	—		$	3,109
Trade name		411		—		—			411
Customer relationships		803		140		(153	)		790
	$	4,323	$	140	$	(153	)	$	4,310
	Balance as of June 1, 2010 (net of amortization)		Additions		Amortization			Balance as of May 31, 2011
Goodwill	$	3,109	$	—	$	—		$	3,109
Trade name		411		—		—			411
Non-compete agreements		66		—		(66	)		—
Customer relationships		921		—		(118	)		803
	$	4,507	$	—	$	(184	)	$	4,323

Goodwill is not deductible for tax purposes.

There were no conditions that indicated any impairment of goodwill or identifiable intangible assets in fiscal 2012, 2011 and 2010. The annual impairment review date for goodwill is May 31.

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

	May 31, 2012
	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Trade name		—	$	411	$	—		$	411
Customer relationships		3-8 years		2,094		(1,304	)		790
			$	2,505	$	(1,304	)	$	1,201
	May 31, 2011
	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Trade name		—	$	411	$	—		$	411
Non-compete agreements		2-5 years		1,050		(1,050	)		—
Customer relationships		3-8 years		1,954		(1,151	)		803
			$	3,415	$	(2,201	)	$	1,214

Amortization expense was $153, $184 and $276 for fiscal 2012, 2011 and 2010, respectively.

Amortization expense for customer relationships and non-compete agreements is included in selling, general and administrative expenses. The following table provides estimated future amortization expense related to intangible assets:

Year ending May 31,	Future Amortization
2013	$	164
2014		164
2015		129
2016		118
2017		118
Thereafter		97
	$	790