Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2012

NOTE 3: GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table provides information related to the carrying value of the Company’s goodwill by operating segment:


(In Thousands)	Sales and Lease Ownership			HomeSmart		Total
Balance at January 1, 2011	$	202,379		$	—	$	202,379
Additions		9,055			13,833		22,888
Disposals		(5,925	)		—		(5,925	)

Balance at December 31, 2011		205,509			13,833		219,342
Additions		14,399			815		15,214
Disposals		(361	)		—		(361	)

Balance at December 31, 2012	$	219,547		$	14,648	$	234,195

Intangible Assets

The following is a summary of the Company’s identifiable intangible assets by category at December 31:


	2012							2011
(In Thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Customer Relationships	$	4,377	$	(2,170	)	$	2,207	$	3,400	$	(1,001	)	$	2,399
Non-Compete Agreements		3,408		(1,471	)		1,937		2,855		(1,062	)		1,793
Acquired Franchise Development Rights		4,566		(2,684	)		1,882		4,452		(2,578	)		1,874

Total	$	12,351	$	(6,325	)	$	6,026	$	10,707	$	(4,641	)	$	6,066

Total amortization expense of intangible assets, included in operating expenses in the accompanying consolidated statements of earnings, was $3.7 million, $2.3 million and $3.1 million during the years ended December 31, 2012, 2011 and 2010, respectively. As of December 31, 2012, estimated future amortization expense for the next five years related to identifiable intangible assets is as follows:


(In Thousands)
2013	$	3,509
2014		1,598
2015		466
2016		232
2017		177

- 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.

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