Identifiable intangible assets

9 Months Ended

Sep. 30, 2012

Identifiable intangible assets [Abstract]

Identifiable intangible assets

Note 5 — Identifiable intangible assets

The Company capitalizes certain costs related to the development of computer software sold by its Hospitality segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs in the period the costs are incurred.  Software development costs incurred after establishing technological feasibility (as defined within ASC 985-20) are capitalized and amortized on a product-by-product basis when the product is available for general release to customers.  Software costs capitalized during the three and nine months ended September 30, 2012 were $871,000 and $2,493,000, respectively.  Capitalized software for the three and nine months ended September 30, 2011 were $1,952,000 and $7,048,000, respectively.

Annual amortization, charged to cost of sales when the product is available for general release to customers, is computed using the greater of (a) the straight-line method over the remaining estimated economic life of the product, generally three to seven years or (b) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization of capitalized software costs for the three and nine months ended September 30, 2012 was $402,000 and $1,166,000, respectively.  Amortization for the three and nine months ended September 30, 2011 was $112,000 and $395,000, respectively.

The Company acquired identifiable intangible assets in connection with its acquisitions in prior years.  Amortization of identifiable intangible assets for the three and nine months ended September 30, 2012 was $138,000 and $441,000, respectively.   Amortization for the three and nine months ended September 30, 2011 was $257,000 and $667,000, respectively.

The components of identifiable intangible assets are:

	(in thousands)
	September 30,			December 31,
	2012			2011
Acquired and internally developed software costs	$	20,394		$	17,902
Customer relationships		4,519			4,519
Trademarks (non-amortizable)		2,100			2,100
Other		690			690
		27,703			25,211
Less accumulated amortization		(10,924	)		(9,323	)
	$	16,779		$	15,888

The future amortization of these intangible assets assuming straight-line amortization of capitalized software costs is as follows (in thousands):

2012	$	411
2013		2,584
2014		2,560
2015		2,268
2016		2,266
Thereafter		4,590
Total	$	14,679