Goodwill

The Company does not amortize goodwill as it has been determined to have an indefinite useful life.

Goodwill by division consists of the following:



	March 31, 2014		Acquisitions		Impairment		June 30, 2014
QSI Dental Division (1)	$	7,289	$	—	$	—	$	7,289
NextGen Division	33,225		—		—		33,225
RCM Services Division	32,290		—		—		32,290
Total goodwill	$	72,804	$	—	$	—	$	72,804

(1) QSI Dental Division goodwill is presented on a basis consistent with that of the management reporting structures within QSI. For the purposes of testing goodwill for impairment annually and as otherwise may be required, however, the QSI Dental Division goodwill is allocated to all business units that derive cash flows from the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of such goodwill being ascribed to the NextGen Division.

Approximately 70% of the goodwill balance as of June 30, 2014 is expected to be deductible for income tax purposes over the periods prescribed by the Internal Revenue Code ("IRC").